The prices of new and used cars in the UK are being forced down by buyers' refusal to pay so-called 'Rip off Britain" prices.

A survey of vehicle prices suggests that consumers have taken to heart last year's campaign highlighting how much less cars cost in continental Europe.

Despite car makers' protests, it also suggests that those who have delayed buying a car until prices fall, may have made the right decision.

The survey by What Car? magazine in association with Alliance & Leicester, found that new vehicles cost 1.9% less in November than they did a year earlier.

The so-called nearly new vehicles - which often have less than 100 miles on the clock - were an average 13.5% cheaper.

Competition probe

The rise in the number of sales of "nearly new" cars has been seen by some observers as the industry's attempts to shift stock while trying to maintain new car prices.

Used cars were an even more dramatic 9.3% cheaper.

Steve Fowler, What Car? editor, said: "The pressure on manufacturers to drop prices is greater than ever, and we've shown they're already making moves in the right direction."

Trevor Hilliard, of Alliance and Leicester, said: "It would seem that manufacturers are now responding to mounting pressure from consumers, who, dissatisfied that prices are not falling fast enough, are holding back from making a car purchase.

"Given this, we can expect prices to come down more in the coming months."

The 'Rip off Britain' campaign has been highlighting areas such as car prices and mortgage charges where the UK is more expensive than in countries such as France, Germany and the US.

People carriers popular

As part of the campaign the Consumers' Association took a stand at last year's London Motor Show to complain about the perceived rip-off.

Government watchdogs at the Competition Commission are expected this month to recommend a shake-up in pricing after a probe of manufacturers and dealers.

All but two categories of new car were cheaper than a year earlier.

The exceptions were people carriers or multi-purpose vehicles such as the Renault Scenic or Mercedes A Class, and compact executive cars like the Mercedes C-Class and BMW 3-Series.

The biggest price falls among new vehicles were in the city car category, which includes the Ford Ka and Daewoo Matiz. The average reduction was 5.9%.