New car transaction prices rose by 0.82% in June compared to May according to data released by independent monitor, CarPriceCheck.

Despite the marginal increase during the month, the headline cost of buying a new car from a UK supplier has fallen by just £36 for an average £12,000 small family model since January 1.

In the opening six months of 2002, consumers have seen transaction prices gradually even out with two months of falling prices balanced by two months of rising prices in sequence. The net result is a fall of a third of 1%.

Strong consumer demand did see June buck the general pricing trend as some franchised dealers looked to maximise returns following a record May and the backdrop of a seasonally quiet trading month.

However, a small handful of manufacturers did deliver wide-ranging price cuts during the month. Volvo responded to a 15.49% fall in sales during May compared to May 2001 by improving discounts by an average of 4.3% on a third of its range. Similarly, Land Rover slashed 2.83% off the popular Freelander model as it sought to reverse its 7.01% fall in sales in the year to date.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

MG Rover continued to build on its renewed success on the forecourt by reducing transaction prices by an average of 1.94% on 90% of its range during June to leave buyers with a 6.06% saving off list price.

Steve Evans, chief executive of CarPriceCheck, believes the Start of 2002 confirms that prices have reached the lowest manufacturers are willing to allow under current conditions.

“Prices were realigned in late 2000 and the early part of 2001. They then changed tack and began to improve specification as a means of compensation against the price differentials with Europe. We’re now seeing the natural peaks and troughs of a buoyant market and its traditional buying patterns.”

Although transaction prices for EU Imports also rose by 1.53% during June, it’s unlikely to have a negative effect on the growing number of parallel imports being bought by private buyers.

Average discounts still remain more than double those found on UK forecourts – standing at 11.57% compared to 5.15%.