Clear evidence of falling new car prices

26 July 2001 #SMMT News

According to latest figures published by the Alliance & Leicester

Car Price Index, the average price of a new car fell by six per cent in June.

The latest drop marks more than two years of falling prices recorded by the

Index and is clear evidence that retail prices in the UK are continuing to fall.

Since the first Car Price Index was published in July 1999,

the Alliance & Leicester Index has not recorded a rise in the average price

of a new car. Each month prices have fallen with the largest drop in December

2000, down a massive 10.4 per cent on a year earlier.

The latest report comes as new car sales in the UK are booming,

with growth driven by private individuals buying from their local franchised

dealer. June saw the ninth consecutive month of rising new car sales, as registrations

by private buyers grew by 22.8 per cent, accounting for 100,720 units compared

to 82,024 in June last year.

Commenting on the news SMMT chief executive Christopher Macgowan

said, ‘Consumers know where to go to get the best deal, and as prices continue

to fall, car buyers are confident that this is their local franchised dealer.

During the last few days there has been a great deal of speculation about car

prices in the UK, but this report is clear evidence that prices have come down

and continue to do so.’

Notes to editors

  1. The forecast for total new car registrations this year has

    been revised from 2.25 million to 2.3 million units.

  2. The Car Price Index is independently verified by the Centre

    for Economics and Business Research (CEBR) and is produced by the Alliance

    & Leicester in association with What Car?

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