Motorists take cheer from cheaper cars

New car prices have fallen from an average £14,397 to just over £13,000 in the last five years, while the Retail Prices Index has risen by 12.8 per cent. This is the main finding from the final Alliance & Leicester Car Price Index.

New car prices have fallen from an average £14,397 to just over £13,000 in the last five years, while the Retail Prices Index has risen by 12.8 per cent. This is the main finding from the final Alliance & Leicester Car Price Index.

The survey found that nearly new cars have fallen even further in the period, by an average of a fifth, while used cars have fallen by a quarter. Nearly-new are a year old, and used are at least three years old.

The cheaper the car, the faster their price has fallen. City cars, the lowest price category, have become nearly a fifth cheaper, but luxury cars are only 5.4 per cent down over the five years.

Andy Bayes, head of personal loans at Alliance & Leicester, said: "The last five years we have been sponsoring the survey have seen the car-buying consumer's position strengthen. Demand for new cars has remained very strong, with record volumes of cars sold year on year. Despite this, prices have fallen, squeezed by increased competition from cheap imports."

The market was opened up by the lifting of the Voluntary Export Restrictions on cars after a media campaign claiming that car buyers in this country were suffering from "rip-off" Britain. This was fuelled by the strength of sterling, which made international comparisons of prices in Britain appear higher than those in other countries.

The proportion of total weekly household expenditure used to buy vehicles has risen from 4.7 per cent in 1994-5 to 6.6 per cent in 2002-3, because more households have more than one vehicle.

Alliance & Leicester is ending its sponsorship of the Car Price Index, which is calculated by the Centre for Economics and Business Research. The centre's director, Douglas McWilliams, said: "By looking at the prices consumers actually pay, rather than list prices, we have gained a valuable insight into the reality of the UK motor industry."

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Sales Assistant / Buyer

    £15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

    Recruitment Genius: Customer Service Advisor

    £15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

    Recruitment Genius: Compliance Manager

    £40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

    Day In a Page

    Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

    Is this the future of flying?

    Battery-powered planes made of plastic, and without flight decks
    Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

    Isis are barbarians

    but the Caliphate is an ancient Muslim ideal
    The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

    Curse of Brink's Mat strikes again

    Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
    Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

    'The ministers talk to us about miracles'

    Why Greeks are cynical ahead of the bailout referendum
    Call of the wild: How science is learning to decode the way animals communicate

    Call of the wild

    How science is learning to decode the way animals communicate
    Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

    'The economic collapse has happened. What is at risk now is democracy...'

    If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
    The science of swearing: What lies behind the use of four-letter words?

    The science of swearing

    What lies behind the use of four-letter words?
    The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

    The Real Stories of Migrant Britain

    Clive fled from Zimbabwe - now it won’t have him back
    Africa on the menu: Three foodie friends want to popularise dishes from the continent

    Africa on the menu

    Three foodie friends want to popularise dishes from the hot new continent
    Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

    Who will fill Donna Karan's boots?

    The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'
    10 best statement lightbulbs

    10 best statement lightbulbs

    Dare to bare with some out-of-the-ordinary illumination
    Wimbledon 2015: Heather Watson - 'I had Serena's poster on my wall – now I'm playing her'

    Heather Watson: 'I had Serena's poster on my wall – now I'm playing her'

    Briton pumped up for dream meeting with world No 1
    Wimbledon 2015: Nick Bollettieri - It's time for big John Isner to produce the goods to go with his thumping serve

    Nick Bollettieri's Wimbledon Files

    It's time for big John Isner to produce the goods to go with his thumping serve
    Dustin Brown: Who is the tennis player who knocked Rafael Nadal out of Wimbeldon 2015?

    Dustin Brown

    Who is the German player that knocked Nadal out of Wimbeldon 2015?
    Ashes 2015: Damien Martyn - 'England are fired up again, just like in 2005...'

    Damien Martyn: 'England are fired up again, just like in 2005...'

    Australian veteran of that Ashes series, believes the hosts' may become unstoppable if they win the first Test