Motorists 'opting for smaller cars'

A new study has found that motorists are increasingly opting for smaller, more fuel-efficient cars due to soaring fuel costs and squeezed household budgets.

The average asking price for a used car has fallen to £9,054, down 1.3% year-on-year, according to figures released by Auto Trader.

There was a near-23% drop in the average asking price for larger vehicles, such as the Peugeot 607 and Citroen C6, during the past year, while prices of used small cars remained stable.

Lower medium-category vehicles, such as the Ford Focus and Vauxhall Astra, saw prices fall 5% over the past 12 months.

There was a rise in prices for some second-hand small cars, including the Ford Fiesta, during the period.

The average asking prices for used cars fell the most in London, while eastern England, Yorkshire and Scotland saw prices going up.

Tim Peake, director of Auto Trader, said: "These results reveal a clear correlation between the current economic situation and car choice, with smaller, more fuel-efficient cars becoming increasingly popular as people respond to fuel price increases.

"There is also evidence to suggest that families with more than one car are moving back to single-vehicle households."

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