New car prices 12 per cent lower than January 2000

02 March 2004 #SMMT News

UK one of the cheapest new car markets – confirms EC car price report

New car prices continue to tumble, according to independent UK and European reports. Monthly figures released by the Alliance and Leicester last week, claimed that the average price paid for a new car in the UK is around 12 per cent lower than it was four years ago. Figures published today by the European Commission, confirm that Britain is also one of the most competitive markets in Europe.

This country is now the cheapest market for 15 of the 82 models surveyed in the six-monthly EC report. Just four years ago, the UK was highlighted as the most expensive market for almost all models under the spotlight.

Christopher Macgowan SMMT chief executive commented, ‘Clearly there has been a massive drop in the price of new cars in the last four years and this is very good news for buyers. In both absolute terms and in relation to our European neighbours the fact is that we are more competitive than ever. Three consecutive record years and healthy showroom traffic are testament to this fact.’

New car prices have stabilised partly as a result of currency fluctuations. At the start of the millennium the UK suffered as sterling’s strength kept prices higher in relative terms than many other markets. However, the pound has since depreciated by around 15 per cent, helping the UK cement its position as the second largest European new car market.

Notes to editors:

  • The EU report compared the prices of 91 new car models however, only 82 of these models are currently available on the UK market.

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