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New Car Prices Soar 40% Since 2019

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Main Points:

Car prices have risen considerably: More than double the rate of general inflation in the last six years (wich was 21.2% according to the INE). Economic uncertainty impacts car sales: It always affects enrollments of new vehicles.
Technological uncertainty and affordability also play a role: Doubts about technology (specifically related to electric vehicles) and a lack of affordable options are influencing purchasing decisions.
Fewer affordable models available: In 2019, many more car models were priced below the average price of a new car sold. Now, there are significantly fewer.
Electrified cars are gaining traction: They represent 19.5% of registrations. Subsidies are helping with the adoption of electric cars and plug-in hybrids, but the transition started timidly compared to other European countries.
Incentives are vital: Energy savings certificates and the Moves Plan are cited as helping to make electric vehicles more attractive through price bonuses.
Overcoming price gap and fear of new technology: Aids for purchasing electric cars are still necessary.

Key Factors Influencing Car Sales (and lack thereof):

Inflation and Rising Prices: Cars are becoming more expensive relative to overall inflation.
Economic Uncertainty: A general climate of economic instability discourages large purchases.
Technological Transition: The shift to electric vehicles introduces uncertainty for buyers and a need for supporting infrastructure and subsidies.
Affordability: The availability of budget-pleasant car models is decreasing.
Government Incentives: Subsidies and programs can encourage the adoption of electric vehicles.

In essence, the article discusses the challenges facing the car market due to rising prices, economic anxieties, the transition to electric vehicles, and the crucial role of government incentives in navigating these changes.

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