The latest What Car? Price Index looked at price fluctuations of new and used cars in the UK, and shows that competition and discounts have slashed the cost of a typical new car by 10%. This is despite inflation rising by 17.5% between June 1998 and June 2005.
What Car? group editor Steve Fowler, says: “Low prices on the forecourt today were sparked by a combination of the Competition Commission’s 2001 ruling that UK prices were too high, and a weak market for small cars and superminis – the two largest categories. Dealers are having to cut prices to prop up sales.
”UK 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.”
The index also showed that the only types of car to suffer increased prices over the past seven years are compact executives, such as the BMW 3-series and Audi A8.
Every other type of car is cheaper to buy new today than it was seven years ago.
Overall Price Change Of New Cars (June 1998-June 2005)
City cars (eg Ford Ka, Kia Picanto) -19%
Superminis (eg Renault Clio, Vauxhall Corsa) -8%
Small family cars (eg Peugeot 307, VW Golf) -11%
Family cars (eg Ford Mondeo, Vauxhall Vectra) -5%
MPV people carrier (eg Citroën C8, Renault Espace) -11%
4x4 off-roaders (eg Land Rover Freelander, Toyota RAV4) -13%
Compact executive cars (eg Audi A4, BMW 3 Series) +2%
Executive cars (eg Jaguar S-type, Mercedes E-Class) -11%
Luxury cars (eg BMW 7 Series, Lexus LS430) +3%