It's not your imagination: it's shameless what sporty compacts have risen in price. And it's not inflation's fault

Sporty compacts , like the timeless  Volkswagen Golf GTI  or  the  Honda Civic Type R , have always been expensive cars. Let no idealized past and yesteryear prices fool us, these were  exclusive cars . However, in recent years they have reached unprecedented prices. And we're not talking  speculation here .

It's true, today's cars are comparatively more expensive than 10 or 20 years ago, and shamelessly too. In the case of sporty compacts, it's even more exhilarating. So much so that some current models are more expensive than the original Audi S3 Sportback.

Increase from 6,000 to 22,000 euros

If we look at the case of the  Honda Civic Type R  itself, between the 2007 model and the current Type R , the difference is overwhelming: 22,418 euros. The 2007 Civic Type R costs 19,992 euros excluding taxes, which in 2022 would be 25,793 euros. Adding the VAT, which has since risen from 16% to 21%, and the registration tax of 9.75%, we arrive at a price of 32,434 euros.

If we update it with current taxation (VAT which in the meantime has increased from 16% to 21% and the current registration tax of 9.75%) we arrive at an equivalent price of 32,434 euros. His descendant is now worth 22,416 euros more. That is to say, the increase is practically identical to the price of a  Honda Jazz , which today costs 22,946 euros.

The new model is larger, more powerful (+130 CV) and more technological, and also, it is a segment in which there are fewer and fewer sales, so the unit cost is increasing.

Obviously, this is not something specific to Honda, although not all brands that keep sporty compacts in their catalog have raised prices to beastly levels.

If we look at the case of the  2006 SEAT León Cupra  240 CV, the most powerful model at the time, it cost the equivalent of 36,985 euros (once adjusted with the CPI and current taxation), while that the  CUPRA León  2023 300 CV costs 54,617 euro.

The top of the range "León CUPRA" went up to 17,632 euros. The situation improves if we look at the 245 CV  CUPRA León  (from 42,675 euros), it is 5,690 euros more expensive. But it's not high-end like the 2006 Cupra was.

We are still in the Volkswagen group. The cost of the  Volkswagen Golf GTI  5-door 200 HP in 2008 has risen from the equivalent of 37,915 euros (once adjusted for inflation and current taxation).

Today, the  Volkswagen Golf GTi  has 245 hp and costs from 46,410 euros (48,545 euros, if you opt for the DSG change). The increase in this case is much lower than those operated by Honda or SEAT SA (CUPRA), since it is "only" 8,595 euros.

One of the rare sports compacts with a long and famous lineage still on the market, the  Renault Mégane RS  in its 5-door version and 225 CV cost in 2008 the equivalent of 40,658 euros (once corrected for inflation and current tax).

The current model with 300 CV and EDC double clutch transmission, and which  already has a wheel out  of the Renault catalog forever, costs -or costs- in its normal version 46,490 euros. That is to say, it increased "only" by 6,031 euros.

Are these price increases justified? Manufacturers will say yes, due to rising development costs, greater anti-pollution measures with which cars are fitted, connected services, whether required by law or not, as well as the increased the unit cost of these models, since they are selling less than before. But above all, the increase is justified if there is a clientele ready to pay this price, the price of exclusivity.

The reality is that yet another example of many brands' new strategy:  sell less, but earn more . One of the best examples we have is CUPRA, which sold 79,300 cars in 2021.  And with just under 80,000 cars, it generated no less than 25% of SEAT SA's turnover in 2022, CUPRA sold 152,900 cars, so you can imagine what that meant for SEAT SA's coffers.