Motoring: Car sales down as tax changes bite

New car sales are falling for the first time this year. Early figures for May suggest that recent tax changes and other economic uncertainties are starting to affect buyers.

To maintain sales, many manufacturers are cutting prices. Ford is offering pounds 500 cashback deals on most new Escorts and Fiestas, while Granada and Mondeo prices have been cut. Rover has a new bottom-range 820 model pounds 3,000 cheaper than its predecessor, while Vauxhall is offering free extras on Corsas, Astras and Cavaliers.