Mercedes Cars Become More Elusive After 43% Jump in Prices

Driving a shiny new Mercedes-Benz may soon become a distant dream for many but the most affluent.

(Bloomberg) — Driving a shiny new Mercedes-Benz may soon become a distant dream for many but the most affluent.

The average price of a Mercedes reached some €72,900 ($76,590) last year — a 43% increase over 2019 levels. That chimes with the carmaker’s push even further upmarket by focusing on top-end models like the S-Class sedan to bolster profits. The company has been working through pent-up demand after chip shortages curbed production last year.

Mercedes is hiking the prices even of entry-level models like the A-Class hatchback. Drivers are increasingly only be able to buy versions of the car with bells-and-whistle options as standard.

Mercedes isn’t alone. Around the world, manufacturers are reaping the benefits of selling fewer but more expensive cars. In the US, average monthly payments for a new car nearly doubled from late 2019. And as battery-powered vehicles tend to cost more than the average combustion-engine car, the shift to EVs may make the affordability crisis even worse.

Read more: Car Prices Hit Record High as Automakers Limit Output

–With assistance from Chris Bryant.

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