UK new car prices crept up during March by 1.1 percent compared to February, but the level of discount activity in the market is still healthier than 12 months ago, according to data released by the independent price monitor, CarPriceCheck (www.carpricecheck.com).
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According to CarPriceCheck, transaction prices increased on more than eight percent of models available in the UK market during March. Car buying activity was also up 40 percent on the previous trading month.
But data from CarPriceCheck also shows that there has been a 17 percent increase in the number of models being offered by franchised dealers with a discount of more than five percent off the official list price since March 2001. Internet and import retailers recorded a nine percent increase in five percent-plus savings offered.
CarPriceCheck says that the upward trend in prices was driven by increases in the ‘executive’ and ‘4×4’ segments – up 1.3 percent and 1.55 percent respectively.
The biggest price falls were found in the competitive small family category populated by the likes of the Ford Focus and Volkswagen Golf. Prices dipped in March by 0.96 percent compared to February.
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By GlobalDataSuperminis like the Toyota Yaris and Renault Clio, which account for 42 percent of new car sales in the UK, registered a minor 0.31 percent increase in the same period.
“There are certainly more deals, not always better deals, in the market today than there were 12 months ago,” said CarPriceCheck chief executive Steve Evans.
“Smaller, independent franchised dealers may not be able to cope with the fluidity and aggressive pricing policies of the larger dealer groups and internet suppliers, but the fact is, good discounts are generally more available whether you opt to buy from a traditional source [local dealer] or via the internet or phone.”
“The current new car market is very competitive. It’s good news for the consumer as price is the determining factor for at least 90 percent of buyers.”
