Car makers offer discounts to battle rising prices

The average price of a new car rose by £47 in May 2011, the fourth increase in prices so far in 2011 and the eleventh successive quarter where the value of a new car has increased.

The new figures have been released by DrivenData, which has compiled a new car price index over the past 12 months to identify trends in the industry.

However, the quoted figure is still above the top price of four out of five of the best-selling cars in the UK; the Ford Focus, Ford Fiesta, Vauxhall Corsa and Vauxhall Astra.

Inflation-busting models such as the £10,000 Ford Fiesta are set to become increasingly popular in the coming months after a 5.2 per cent in UK inflation threatened to derail economic recovery.

Car manufacturers have responded to the rise in UK new car prices by offering a number of ‘summer deals’. Vauxhall and Seat have both reduced the price of its range for a limited period in recent days.

Other manufacturers such as Renault have introduced new entry-level specifications to bring down the price of the range. The ‘Bizu’ models are available on Renault’s most popular cars such as the Clio, bringing prices down to £8,595.

Other Renault models such as the Twingo, Megane and Scenic are also reduced with the Bizu range, with prices starting from £6,595, £11,595 and £12,595 respectively.

Even Land Rover has identified a lower price point as essential in its luxury SUV range. The new Range Rover Evoque in five-door body style starts from less than £30,000 when it goes on sale in September 2011.

However, pre-orders for the new Range Rover Evoque have started from Land Rover dealerships.