FALLS in the list prices of new cars have slowed, according to the latest CAP Motor Research New Car Prices Index. The index reveals that last month the average price drop across all sectors was 1.1% - the smallest this year - with the largest price cuts of 2.1% coming in the executive sector.

Lower medium, 4x4 and sports car prices fell 1.3%,upper medium car prices fell 1.1%, MPVs were down 0.4% and superminis fell just 0.1%. The latest Car Price Index from the Alliance & Leicester comparing prices in June 1999 with June 2000 shows prices 4.6% down following drops of 3.2% between May 1999 and May 2000 and a 5.9% fall from April 1999 to April 2000.

However, in a bid to make future new car prices comparisons difficult, there is a widespread belief in the industry that with the introduction of 2001 model year vehicles by most manufacturers in the next few weeks, significant price and model realignments will take place.