New Car Prices May Rise Under 'Super Dealers'

What Car? has warned that drivers could face higher prices for new cars if more motor dealerships merge.

The consumer watchdog has issued its warning after a national dealer group announced that it was considering the purchase of one of its largest competitors.

If successful, the merger would create a massive network of over 250 dealerships - more than twice as many as its nearest rival. What Car? fears that this could trigger a series of 'mega mergers' as other groups try to ensure that they can compete.

The deal would also provide the company with around seven per cent of the overall new car market - which does not sound like much but would be enough to give them a hold over manufacturers.

"In the future, car sales could be controlled by a handful of big companies, rather than the current proliferation of small organisations," an automotive expert told What Car?

"In the short term, consumers may get a better deal, as companies fight for market share, but in the long term the biggest players could control prices and charge buyers more."

Car prices have fallen in recent years and with a competitive motor insurance quote drivers can currently save themselves a lot of money on new car purchases.

Be Wiser is a quality provider of Motor Insurance.