Car buyers benefited from bargains last month, according to a price index report out today.

Average new car prices were 1.5 per cent lower in March 2003 than in March 2002, the index from Alliance & Leicester bank showed.

The best deals were on city cars that fell an average of 5.9 per cent, the index produced in association with What Car? magazine revealed.

Cars one year old were 9.8 per cent less expensive than in March 2002, while three-year-old cars were 11.9 per cent cheaper.

Alliance & Leicester ecommerce director Andrew Robinson said: "Now is a great time to buy. Dealers have been forced to discount following a slow start to the year. Buyers are free to take their pick of cars in almost every category."

Wednesday April 30 2003