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24

Autos Become Cheaper As Time Goes

New cars 13% cheaper than three years ago

New figures show that cars are now nearly 13% cheaper on average than they were three years ago.

Some vehicles have dipped in price by as much as 21.5% since the Alliance & Leicester car price index in association with What Car? magazine started in June, 1999.

Three years ago, an average new car cost 11,971 pounds.

By June this year, the figure had fallen to 10,445 pounds.

According to the index, all categories of car have fallen in price in the last three years.

The 21.5% fall relates to multi-purpose vehicles, while city cars and small cars have also enjoyed falls of more than 20%. The category with the smallest reduction is luxury cars, down just 1.9%.

The price of one-year-old cars has dipped by 16% on average over the last three years, while three-year-old vehicles have gone down 20.6%.

The figures also show that new car prices in June were 2.8% lower than in June, 2001. Luxury cars rose in price by 2.8%, while city cars showed the biggest fall, of 7.4%.

The price of one-year-old cars fell by 6.2% between June, 2001, and last month, while three-year-old cars dropped 9.8%.

Andy Bayes, of Alliance & Leicester, says: "The story over the last three years has been one of ever lower prices and, conversely, increased earnings. These factors have combined to make new cars more affordable than ever before."