An increasingly expensive car? While headline inflation has returned to its pre-Covid crisis levels, motorists’ wallets risk looking bleak again this year. And this in particular, on each trip to the pump (fuel represents around 30% of French transport costs).
An increase of 13 cents in a few months
Since the start of the school year in September, prices at the pump have risen, an increase that has been especially felt in recent weeks. The liter of super unleaded 95 E10 has increased 9 cents since mid-September, according to monthly data from the Ministry of Ecological Transition. Last week we were at 1.7747 euros per liter on average, compared to 1.6791 euros in mid-September.
The same goes for diesel, whose price has increased by 13 cents in four months. The tightening of sanctions against the ghost fleet of Russian ships that transport fuel, but also the appreciation of the dollar against the euro, may explain this increase.
However, we are still far from the 2 euros per liter of summer 2023. In addition, prices may also begin to fall again in the coming months. Donald Trump’s arrival to power on January 20 raises many questions about American production volumes and their influence on world prices.
Auto insurance is on the rise
Another major spending item is unlikely to decline over time: auto insurance. According to data from the alternative insurer Leocare, prices will rise between 4 and 6% this year compared to 2024, increases that double general inflation. And the disparities are very significant depending on the region, as shown in our map below:
Among the cities where the increases are highest, Mérignac (+11.97%) in Gironde, Orléans (+11.91%) in central France and Aix-en-Provence (+11.85%).
As Christophe Dandois, CEO of Leocare, explains to us, insecurity with the risks of theft and damage such as natural disasters weigh on franchises throughout France, but the risks accumulate in certain regions.
Prices will also increase significantly in Ile-de-France, including +11.79% in Vitry-sur-Seine (Val-de-Marne) or +11.75% in Saint-Denis (Seine Saint-Denis).
Another paradox explains these increases in contributions. Newer models cost more to repair, for example electric vehicles. Furthermore, as the fleet has aged (12 years on average), repair costs are also higher, with repairs being more frequent. However, risks are shared at the insurance level and prices are rising. And this is likely to last because clearly the park will not get any younger this year.
An increasingly expensive gray card
And a new expense could weigh on motorists this year. While the price of registration cards had already increased in 8 of the 13 regions since January 1, the Government is considering removing the limit on the amount paid per fiscal horse, which is currently capped at 60 euros, it was reported this Thursday Le Parisien.
Paying for vehicle registration weighs primarily on new vehicle buyers, who already pay high prices for their vehicles. On average, the price of a new car last year was 35,000 euros, according to the Cetelem Automobile Observatory. However, this is perhaps the only good news at the beginning of the year: new car prices could stabilize, after last year’s high level.
In fact, the market is slowing down, with only 1.71 million cars registered in 2024. Buyers are therefore in a good position to negotiate, because brands are more interested in selling even with promotions than in maintaining the vehicles for sale (whose value is depreciating). ) or worse, slow down the operation of factories.
In the second-hand sector, which represents the majority of purchases, the fairly high prices should also remain stable. With, as AutoSCout24 points out, competition in certain recent models between new and used.
Source: BFM TV
