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Car prices begin to rise

New car prices are on the rise according to the latest Alliance & Leicester Car Price Index.

The index, produced in association with What Car?, shows that in real terms the price of new cars year-on-year rose slightly to -5.6% in August compared with -6.8% in July (compared to July and August last year). Family and compact executive cars were priced the same as a year ago, with superminis demonstrating a 1.1% rise.

Prices for nearly new cars (one year old) and used cars (three years old) climbed year-on-year by 3.4% and 6.7% respectively. This compares with year-on-year rises of 10.3% and 12.9% respectively in July.

Andy Bayes, for Alliance & Leicester, said: "Although many new cars are priced lower than a year ago, prices in the most popular categories are really stabilising with family cars and compact executives costing the same as 12 months ago. It appears that we are now beginning to see the end of new car bargains."

The trend towards higher second hand prices shown by the index over the last three months slowed in August with nearly new cars (one year old) showing a year-on-year rise in value of 3.4% compared with 10.3% in July. MPVs showed the only fall in the category (-14.3%) with compact executives demonstrating the largest rise (+14.0%).

As with nearly new cars, prices for used cars (three years old) also climbed with the Car Price Index showing a year-on-year rise of 6.7% compared with 12.9% in July. Only MPVs showed a fall in value (-3.9%) with luxury cars rising by the most (+23.8%). (September 28, 2001)

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