New car prices rise

The annual increase reached 1.3 per cent across Europe but prices remained static in the UK, recording a year-on-year rise of just 0.3 per cent. According to the latest research from the Roadtodata Euro Index, the average price of a new car in the UK during the year to December 2006 also remained static, rising again by only 0.3 per cent. Prices here are now 2 per cent higher than the average cost of a new car in the euro currency zone. Denmark is the most expensive new car market in Europe – prices are 98 per cent higher than the eurozone average.

Switzerland has the most affordable market as prices have fallen 12 per cent below the average. The study also found that there was minimal difference between price increases for petrol and diesel models, indicating that the price premium for diesel models has reached its peak. Sales of diesel cars overtook those of petrol cars for the first time in 2006, buoyed by the popularity of SUVs and estate cars. Consumer preference for oil-burners soared by 4.5 per cent while demand for petrol models across Europe fell by 8.4 per cent.