GLASS'S Information Services has found that, despite an average three per cent increase in new car prices in the 12 months to March, an abundance of discounts and offers means consumers are actually paying less on the forecourt.

Tracking of manufacturer list prices between March 2001-2002 shows an average rise of two per cent for Superminis (Punto, etc), three per cent in the lower medium class (Focus, etc) and four per cent in the upper medium class (Peugeot 406, etc) respectively - an overall average increase of circa three per cent.

"However," says Glass's managing editor, Adrian Rushmore, "what manufacturers ask for and what consumers are now prepared to pay are often different matters. Moreover, to arrive at the final answer, one has to take into account dealer discounts, manufacturer cashback offers, finance deals and the ever popular free insurance schemes."

The tracking shows that once all these factors are taken into account, consumers actually paid slightly less for their new cars in March this year than they did last. Used car prices have fallen back in line with the reduced amount paid for new cars.