Falling car prices and competitive deals have put car buyers into the driving seat, writes David Duffy.

Alf Middleton, group general manager at Motorworld, one of Oxfordshire's largest motor groups, said: "Despite what you may have heard, many new car prices have already fallen by ten per cent or more since this time last year.

"During all the speculation generated by the Government's examination of UK car pricing, there has been a steady reduction of car prices and coupled with the really cracking deals on offer at the moment, there's never been a better time to buy a car.

"Most car manufacturers have responded to criticism about high UK prices compared to Europe and have wiped thousands of pounds off the prices," he added.

"Although the DTI recommendations look likely to be agreed next month, it is unlikely that further dramatic reductions will follow."

Press advertisements confirm the picture. All Motorworld franchises are offering cars for less than this time last year. Some have straight price reductions like Mitsubishi - which was one of the first manufacturers to announce price cuts Hyundai and Volkswagen, while others like Volvo and Audi have put together superb offers which represent excellent value for money.

Mr Middleton said: "The predicted rush to buy overseas hasn't materialised as making a substantial purchase with a dealer in another country is still taking a risk.

"Delivery dates cannot be guaranteed and some hidden premiums make the differential smaller than at first glance."

The most important part of any transaction involving a part exchange vehicle is the net cost to change and with prices as they now stand Motorworld is confident that customers will find their local dealership is the best place to buy a new car.

"The ultimate effect of the new legislation will be to iron out the anomalies which existed so that fleet buyers will pay a bit more and the man or woman on the street will pay a bit less.

"Prices in Europe will also edge upwards while UK prices have come down. Manufacturers certainly have less power to dictate prices and that can only be good news for the consumer.

"However, it would be impossible for the motor industry to make the sort of massive reductions which some consumer organisations are still quoting."