NEW car prices are now at the same level as in June 2003, it was disclosed today.

The cost of new motors has fallen during four of the last five months and the average new car is now 0.5% less than a month ago, a car price index from What Car? magazine showed.

Over the past month, city car prices have dropped by 2.4% and family cars have become 2.3% cheaper.

In four other classes, prices have dipped more modestly, with multi purpose vehicle people carriers 0.5% cheaper, 4x4 and executive car prices each down 0.4%, and small cars 0.3% cheaper.

Three classes have risen slightly in price over the past month - luxury cars (up 0.5%), superminis (up 0.3%) and compact executives (up 0.1%).

What Car? editor David Motton said: "Whenever sales start to slow down, salesmen will be keener to offer a big discount. Now is a good time to snap up a new-car bargain.

"You should never pay the full asking price for a new car. Our research proves you can save on average '1,518 - that's 8.5% off the list price."
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