ADAC Analysis: Small car prices continue to rise steadily

Image: Fiat (illustrative)

Small cars are no longer automatically affordable entry-level models. According to recent ADAC figures, the average prices of all models in this class available on the market continue to rise steadily.

The trend is particularly evident among internal combustion engine vehicles: According to the analysis, a new small car with a gasoline engine costs an average of almost 24,000 euros — nearly 80 percent more than ten years ago. Diesel or other types of internal combustion engines are no longer offered in this class at all. Overall, the supply of small cars with internal combustion engines is also declining: Only 46 models were introduced this year, reaching a new low.

A contrasting trend is evident in the electric vehicle sector. An electric compact car costs less than 30,000 euros this year, a decline of over nine percent compared to 2024. At the same time, there are increasingly more models available: ADAC now counts nearly 40 such models. Nevertheless, even electric compact cars remain too expensive in the eyes of this mobility association. Ten years ago, consumers had to pay almost 5,000 euros less for a brand-new electric car, and that was with an even more limited selection of just under ten vehicles.

According to ADAC, when all types of propulsion are considered together, small car prices remain high overall or rise slightly. At least the selection has improved somewhat over the past year, with customers now having access to more than 80 models, the highest number since 2017. However, during the same period, the average price of a small car across all propulsion types increased by over 10,000 euros, making it unaffordable for many consumers.

ADAC therefore demands that manufacturers must not neglect the compact car segment. Many consumers do not need an excessive amount of comfort or entertainment features, which are now standard in many compact cars. The automobile club sees untapped savings potential here. Due to the high financial burdens of recent years, many consumers rely on affordable and inexpensive transportation options — and that is precisely what a compact car should provide.

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About the author

Thomas Langenbucher is an expert in electric mobility with professional experience in the automotive and financial industries. Since 2011, he has been covering electric cars, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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