New car prices fall 10%

BRITONS are paying an average of 10% less for a new car than they were seven years ago. A combination of a weak market for new motors and a ruling that prices were too high from the Competition Commission in 2001 have contributed to the fall.

Small city cars such as the Ford Ka or the Kia Picanto have suffered the largest fall in price, down by an average of 19% as the market became flooded with new models.

Off-road 4X4 cars have also dropped back by 13%, while small family cars and people carriers have become 11% cheaper.

However, luxury cars, such as the BMW 7 Series and Lexus LS430, have held their price the best, actually rising in price by 3%.

The survey by What Car? magazine also found that there are now even better deals for nearly-new cars, as the index showed that the price of one-year-old cars has fallen by an average of 29%, with city car prices plunging 39%.

What Car? group editor Steve Fowler said: 'Dealers are having to cut prices to prop up sales. Buyers can get a seriously good deal on the forecourt today and, if they shop around, do their homework and haggle, they could pay up to 19% less for a typical city car than they would have paid seven years ago.'