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Why are car prices so high?

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Prudent
Prudent Posts: 11,635 Forumite
Part of the Furniture 10,000 Posts Name Dropper
Just looking for your thoughts here.

I replace my car roughly every 3 -4 years. I bought my current car in December 2006. It is a Renault Clio and was 12 months old with 7,000 miles on the clock when I bought it. I paid £5,500.

Feeling it is time to replace the car, I have been looking for a similar deal (allowing for inflation of course), but feel prices have risen hugely. Is this a false impression?
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