Car Forecourt Prices Tumble As Dealers Try To Tempt Buyers

The What Car? Price Index has revealed that new car prices are falling for the first time this year. The Index, which has closely monitored new and used car prices in the UK for the past seven years, shows that cars are on average 1.4% cheaper than 12 months ago.

Since the beginning of 2005, new car prices generally have risen steadily compared with 2004, but with the recent 11% drop in sales to private buyers, new car prices in many categories are beginning to fall.

Steve Fowler, What Car? group editor, said: "Disappointing sales for the first half of 2005 have prompted car manufacturers to look closely at their pricing. Consumers are thinner on the ground than in previous years and those that do want to buy are well informed and know how to drive a hard bargain."

According to the What Car? Price Index, most types of car are cheaper today than they were a year ago - and prices for the controversial 4x4 have slumped the most. Buyers shopping for a 4x4 are likely to pay 2.5% less than they would have done a year ago.

Small and economical city cars are down in price as are superminis, family and executive models.

Overall price change of new cars (July 2004 - July 2005)

The What Car? Price Index also reveals that both new and nearly new 4x4s and MPVs are being dramatically reduced. One-year-old 4x4s have experienced a 12.9% fall in price while the average cost of MPVs of the same age has dropped by 11.2% compared with last year’s figures.

Motorists looking for a one-year-old car should find good deals in the compact executive market, which is reported as being down by 9%, while executive cars are down by 8%.

Overall price change of nearly new cars (July 2004 - July 2005)