Prices for new and used vehicles in Switzerland have risen sharply in recent months, driven by problems with the supply of electronic chips and raw materials, but also due to an increase in demand.
At the end of June, the Autoscout24.ch website listed 111,000 used vehicles and 23,000 new cars. A new vehicle costs an average of 54,730 francs, an amount up by 4,000 francs over one year (+8%), according to a press release published on Tuesday by the classifieds portal.
The strong demand for used vehicles, for its part, pushed prices up by 14% to an average of 29,916 francs. Customers fall back on this market because the lead times for a new car are long – from four months to more than a year depending on the brand and model chosen.
“Margins are shrinking for everyone”
The director of Autociel, a company active in the direct import of vehicles and in the sale of new and used cars in La Conversion (VD), has been observing rising prices for several months.
“The increase can especially be seen on the most popular models and brands, such as Audi, Volkswagen or even BMW. The second-hand market is particularly tight. Margins are falling for everyone, so prices are rising,” explains Thursday Jérôme Chessex in La Matinale.
In the eyes of the professional, price increases are not always justified. He also notices a new phenomenon.
“A valid price this year for a new car at an official dealership is not necessarily guaranteed. If there is a price increase between when the car is ordered and when it is produced, the difference will be passed on and it you’ll have to pay extra.”
>> Interview with Jérôme Chessex, director of Autociel, a company active in the direct import of vehicles and in the sale of new and used cars:
Windfall effects?
Flavien Neuvy, director of the Cetelem Observatory, recalls that car manufacturers have been facing a very significant increase in production costs for more than a year. “Energy costs are rising, steel and semiconductor prices too. Manufacturers are forced to pass on this increase in selling prices,” he said.
The economist notes, however, that “windfall effects” cannot be excluded. “Manufacturers might take advantage of this price increase to increase prices a little more and make more margins. When you look at the margins of manufacturers, they have rather tended to increase in recent years.”
>> Listen to the interview with Flavien Neuvy, economist and director of the Cetelem Observatory:
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