European Forum User: 'Car Prices Out of Reach'

Forum User Claims Europeans Can No Longer Afford Cars

The debate asserts bluntly that Europeans lack the funds to buy vehicles. This statement, which would sound like a confession from a salesperson, hit hard in a sector where participants claim sales have lagged behind production for months. The headline is not barroom gossip; it is a diagnosis some attribute to the financial signatories of one of the continent's largest automotive groups, though no executive is named in the material.

Reaction was swift. Much of the audience interpreted the message as a corporate excuse to justify inflated prices, and the conversation quickly turned to an uncomfortable question: Is there truly no money, or has the product become unreachable?

From €12,000 to €30,000: The Leap That Broke the Market

Price is the most repeated argument. When cars cost €12,000, they sold like hotcakes; now costing €30,000, they don't sell. The conclusion drawn by many in Spain is simple: people no longer have money. But the analysis has more layers.

Some compare the evolution with concrete figures. In 1999, a 1.6 Astra with 16 valves, air conditioning, and two airbags cost 2.5 million pesetas, according to a circulating account. In 2014, a Mitsubishi ASX with climate control, knee airbags, and alloys cost €18,000, roughly three million pesetas, per the same account. Between those moments, equipment multiplied while price did not skyrocket. The brutal rise came later.

The circulating calculation states a modest car went from €10,000 plus 16% VAT in 2005 to €24,000 plus 21% VAT in 2024. The same product, more than double the price. And with salaries, according to the same analysis, stagnant. The gap between vehicle costs and average family income is wider today than at any point in the last two decades.

How Much of the Price is Tax and How Much Regulation?

One of the most repeated lines of analysis points to the State. Of a car's sale price, how much is tax? Of the annual cost—maintenance, fuel, fees—how much comes from administration versus real cost? The thesis gaining traction in certain circles is that cars are cheap, but "socialism"—understood as the web of levies and regulations—is expensive, raising costs at every link in the chain.

This thesis is not unanimous. Another school argues the increase isn't due to catalytic converters, AdBlue, or lane-keeping sensors, technologies that are actually inexpensive. The hike stems from post-pandemic inflation and, above all, the forced bet on electric vehicles: massive investments brands are offsetting by raising prices on combustion models.

According to this analysis, the strategy is as trinc: since an EV costs €20,000 more than its gasoline equivalent, it is subsidized with public money, margins are reduced, and combustion car prices are raised to make the EV appear competitive. A strategy that, so far, hasn't convinced buyers.

Dacia as a Thermometer for the Middle Class

If there is an indicator of how deep European pockets go, it is the Dacia Sandero. It is the best-selling model, according to participants. The low-cost brand that a decade ago was synonymous with humble cars has become the ceiling for many families. The phrase summarizing the mood: Dacia will soon be the upper-middle-class brand, and everyone else will use scooters.

Scooters, e-bikes, and occasional car rentals for getaways appear as real alternatives in the conversation. "We cannot row beyond our means," summarizes one stance. Another takes it to the extreme: Who says a European must own a car?

The disorienting data is that the market's cheapest car, the Sandero, has become the best-seller. This is not good news for the industry. It signals that consumers have stepped down, then stepped down again.

The Chinese Paradox and Tariffs as a Patch

While Europe debates why it doesn't sell, China manufactures cars Europeans want to buy. They manufacture them so well that Brussels' response has been to penalize their meritocracy with tariffs, according to the cynicist reading. The goal would be for buyers to keep paying more for European products they often consider inferior.

The paradox is that the European industry boasts being among the most subsidized on the continent yet walks on the brink of bankruptcy, except for high-end manufacturers. Stellantis and CATL announced an investment of up to €4.1 billion for a battery plant in Zaragoza, a move some read as confirmation that the future lies in Chinese technology, even if assembled in Spain.

The lingering question is whether Europe is protecting its industry or merely delaying adjustment. According to the most conspiratorial reading, the agenda isn't that you won't have a car, but that you won't own one. Transport as a service, with monthly subscriptions and included data.

Stagnant Wages and Falling Car Prices

Beyond tariffs and batteries, the core problem is the gap between prices and wages. Complaints are unanimous, even among those who disagree on the diagnosis: we have had stagnant salaries for decades while the cost of living rises. The car is just the most visible symptom.

People who cannot buy an apartment or a new Renault are poor, very poor. Not middle class with a second home, nor working class with a paid-off mortgage. Millions of workers believe they are middle class because they have an iPhone, live in rented housing, eat rice and chicken, and take three low-cost trips a year for Instagram. The new car, that object which two decades ago symbolized social mobility, has fallen out of the equation.

Meanwhile, the industry waits for a buyer who does not arrive. And the buyer waits for a car that does not drop in price.

With these elements, increased pressure on Brussels to revise electrification targets and tariffs is predictable. But no one in the sector dares promise short-term price cuts. If adjustment comes, it will come from the supply side: fewer models, more expensive, and concentrated on those who can pay.