According to CAP Motor Research, manufacturers have cut new car prices by 1.4% compared with March 1999. And CAP Index, the company's monthly monitor of new and used car values, says lower medium sector prices are dropping faster than in any other category - 2% this month, year-on-year. Upper medium price falls are close behind the Escort/Astra class.
Automotive editor Mike Hind said: 'CAP Index demonstrates that the new car market is more price sensitive than for many years. With continuing hostility from the consumer lobby, a long-awaited verdict from the Competition Commission and the growth of internet-based sourcing, this trend is likely to continue.'