Most consumers believe they are being ripped off when they buy a new car in the UK, despite figures showing a drop in prices in March.

According to a report published this week by market researchers Mintel, 56% of the 1,500 UK motorists questioned in its survey felt they were being overcharged by high prices on new cars.

The number of people who felt they paid over the top went up slightly from 2000, when a Competition Commission investigation found UK drivers were paying about 10% too much for the average new car.

Their view was supported in January this year by the Office of Fair Trading which said it was "concerned" price differentials between the UK and other EU countries persisted. But car prices in 2002 are running at lower levels than 2001 according to the latest Alliance & Leicester Car Price Index.

Andy Bayes of A&L said the figures showed a continuing decline in prices over the year on all model types except luxury cars. Family cars saw a decline from an average price of £14,120 to £13,904. Small cars experienced a more dramatic fall in price by £685 from £12,294 to £11,609, though MPVs saw the biggest fall of £709 from £14,567 to £13,858.

"The latest year-on-year falls point towards increasingly cheaper new and secondhand cars in 2002. These price drops, combined with an April budget that didn't add to the cost of motoring, means this is a great time to buy a car."