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Wednesday, 28 August, 2002, 07:27 GMT 08:27 UK
Car makers 'greedy' say buyers
How car prices have changed
Prices fell, but have risen slightly. Source: Carpricecheck
Few consumers in the UK believe car manufacturers have taken steps to reduce prices.


Today, the first words a dealer is likely to hear from a customer is what kind of discount can I expect from you?

Steve Evans, chief executive of Carpricecheck

According to a survey of 3,500 car buyers, two-thirds think manufacturers are being "greedy".

Only 2% believe the disparity between prices in Europe and prices in the UK is due to different tax rates.

Two years ago, manufacturers were ordered to reduce their prices by about 10% across the board.

Car makers complied and reduced their prices. But, further comparable cuts have been few and far between on average.

Better deal?

Carpricecheck's latest data shows that new car transaction prices in the UK have fallen by only a third of one percent in the opening six months of 2002.

This is the equivalent of a �36 saving on a �12,000 family hatchback.

According to the survey, 61% felt they were getting a better deal this time around than when they bought last time, but most felt that the cost was still too dear.

As many as 84% fell that car prices were still too high.

A further 14% considered dealers were keeping prices artificially high.

Haggle over prices

Experts said, however, that consumers were more likely to get a better deal.

Steve Evans, chief executive of Carpricecheck, said: "We've seen a culture shift since the hey-days of the Rip Off Britain campaign back in 1999. Today, the first words a dealer is likely to hear from a customer is "what kind of discount can I expect from you? something that was alien to the majority of car buyers two to three years ago."

He added: "The question of whether prices have or haven't fallen may still confuse the consumer, but they've certainly embraced the concept of not buying from the first dealer they visit."

European change

From October onwards, new Europe-wide rules governing the sale of cars come into effect.

Car makers then have a year's grace to comply with new requirements aimed at improving consumer choice and reducing prices.

Dealers will be allowed to sell cars of more than one make in the same showroom.

So a single shopping trip to one dealership could replace three separate visits to showrooms.

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The BBC's Kevin Bocquet
"84% of us think asking prices are too high"

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