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SUV prices fall due to competitive market

New sports utility vehicles (SUVs) have become more affordable over the past year, according to EurotaxGlass’s.

The latest Glass’s New Car Market Trends report indicates that, while list prices across the UK’s new car market as a whole have increased by 1.4% year-on-year to the end of November, those for SUVs have headed in the opposite direction, falling by 0.2%.

EurotaxGlass’s says SUV prices are likely to fall at an even faster rate in 2006 due to a marked increase in competition within the sector and the launch of more affordable models from volume and budget marques.

“There will be at least 25 new SUVs arriving next year - far more than in any other market segment,” said Alan Cole, editor for Glass’s market intelligence service.

“With many of these vehicles expected to compete with affordable hatchbacks and saloon cars, the net effect will be to bring the price of the average SUV down further still,” said Cole.

The list price of the average new car rose by 1.4% year-on-year to the end of November 2005, equivalent to a rise worth £193.

The segment that saw the greatest price increases over this period was the large executive sector (BMW 5 Series, Mercedes-Benz E-Class, etc), with an average list price rise of 3.4%, or £964.

The greatest falls were in the supermini segment (Ford Fiesta, Vauxhall Corsa, etc), with list price reductions worth 1.3%, or £122, on the average car.

There were other list price increases beyond the 1.4% market average in the following segments:

  • Lower-medium (Renault Megane, Vauxhall Astra, etc): up 3.2%
  • Upper-medium (Ford Mondeo, Toyota Avensis, etc): up 2.9%

    Additional below average rises in list prices were found in the following segments:

  • Large MPVs (Renault Espace, Volkswagen Sharan, etc): up 1.2%
  • Compact executive (Mercedes C-Class, BMW 3 Series, etc): up 0.6%
  • Compact MPV (VW Touran, Citroen Picasso, etc): up 0.2%

    A realignment of list prices and changes in specification by Audi puts its A6 model at the top and bottom of the price change league table last month. The single largest list price rise in November was for the Audi A6 2.0T FSI S Line Saloon, which increased by £1,320 to £27,600. The greatest list price fall was for the Audi A6 3.0TDI quattro SE Saloon, which had a reduction of £835 to £30,825.

    To request a free electronic copy of the latest Glass’s New Car Market Trends report, email: marketing@eurotaxglass.co.uk, quoting reference ‘New Car 11’.

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