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To buy a new car, in 2023 a family must spend an average of 7.7 monthly net incomes compared to 4.7 20 years ago. For electricity, the average is 12.8 months. From 2003 to 2023, the prices of new cars doubled (+99%), against a 22% increase in income.
How has the value-income ratio changed?
In the last twenty years the rules of the purchase price of a car have changed with a notable increase compared to the average monthly income which has not had a proportional increase. Thanks to the analysis of the AutoScout24 Study Center, the leading car and motorcycle classifieds portal in Europe, considering the average entry level price list of the Top 10 best-selling new cars, we can have a clearer overview of what is happening. Thanks to the data provided exclusively to Il Sole 24 Ore in the last four years (from pre-covid to today) it is possible to note the most important increase: from 2019 to 2023, the price of a new car went from 17,360 euros to 21,040 euro, recording an increase of 21.2%. From the 6.3 net average salaries that were needed, today at least 7.7 are needed to buy a vehicle. In fact, the same cars have increased in value by 33%, requiring a greater outlay for Italians, as average monthly family incomes have not undergone the same growth: from an average net income of 2,759 euros in 2019, today this is slightly dropped to 2,734 euros.
Models and prices
Let’s see some practical examples of the jump in prices in the four-year period 2019-2023. The Fiat Panda remains the best-selling car in Italy also in 2023. To date, the average list price is 15,750 euros, while in 2019 11,550 euros was enough, therefore a ratio of 4.2. But let’s see some other examples of cars that are in the top ten today: Jeep Renegade which today has a value of 26,300 while in 2019 it was 23 thousand euros, Volkswagen T-Roc which today boasts a value of 28,500 while in 2019 it was 23,600 euros, Fiat 500 went from a value of 14,500 euros in 2019 to 18 thousand euros in 2023 and Dacia Santero which from 7,450 euros reached 12,500 euros.
Income needed to buy a car: how it changes
In the light of these data, it is possible to have a clearer picture showing some evidence of the market: for a new car in segment A the average price was 12,580 euros in 2019, equal to 4.6 income. In 2023 it rises to 18,050 euros (+43.5%), for 6.6 incomes. Moving on to segment B, the average price of a new car was 16,118.75 euros in 2019, equal to 5.8 income. In 2023 it rises to 22,185 euros (+37.6%), for 8.1 incomes. Finally, for a new car in segment C, the average price of a new car was 27,612.78 euros in 2019, equal to 10 incomes. In 2023 it rises to 35,335 euros (+28%), for 12.9 incomes. And looking at the electricity supply, the sales value has dropped: the average price of a new car was 49,114.60 euros in 2019, equal to 17.8 income. In 2023 it drops to 35,127 euros (minus 28.5), for 12.8 incomes.
The trend of the last twenty years
The AutoScout24 analysis also took into consideration the 10 best-selling new cars in segments A, B and C. To buy a segment A city car, one goes from 4 average monthly net household incomes in 2003 to the current 6.6 (18,050 euros), which reach 10.2 if we consider an electric car; for segment B it went from 4.7 of 20 years ago to 8.1 (22,185 euros) and for segment C from 7.2 to a good 12.9 (35,225 euros), almost double. At the regional level, in 2023 Sicily and Abruzzo are the territories where the highest number of average monthly net family income is required to buy a new car (9.7), followed by Campania (9.5), Basilicata (9.4) , Puglia (9.3) and Molise (9.2). On the contrary, obviously due to a question of higher incomes, we find Lombardy and Trentino-Alto Adige, where 6.7 months are sufficient. But if we compare the figure with respect to 2003, Abruzzo and Campania are the regions where increased the number of average monthly incomes necessary to buy a new car, respectively with more than 4.8 and more than 4 months.