New car prices cheaper than 2004
The price of new cars has fallen for the first time this year, according to the What Car? Price Index.
The study shows that driven by the added competition from cheap new car sales online, new vehicles are an average of 1.4 per cent cheaper than they were 12 months ago.
The biggest fall of 2.5 per cent was in the 4x4 category, home to cars like the Toyota RAV4, the new Nissan X Trial and the Jeep Cherokee. Meanwhile compact executive cars like the new Audi A4 and new BMW 3-Series saw the greatest increase at 3.9 per cent.
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The prices for already cheap new cars like the Ford Ka fell by one per cent while Superminis like the Renault Clio and cheap new Vauxhall Corsa experienced a price reduction of 0.4 per cent.
Commenting on the figures, Steve Fowler, What Car? group editor, said: "Disappointing sales for the first half of 2005 have prompted car manufacturers to look closely at their pricing.
"Consumers are thinner on the ground than in previous years and those that do want to buy are well informed and know how to drive a hard bargain."
While new car prices are now cheaper across the board it is still online where the biggest discounts can be found. For example, while the Toyota Rav4 is now 2.5 per cent cheaper than 2004 it can be found at discounts of up to ten per cent through cheap online car sales sites.
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