Car buyers have never had it so good. Or have they?

Last week Suzuki announced it was slashing the price of its entry-level Alto SZ to just £5,995 - making it the cheapest new car on sale in the UK.

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At the same time, a fairly significant engine update - the introduction of dual variable valve timing - has cut the 1.0-litre petrol's emissions down from an already commendable 103g/km CO2 to only 99g/km CO2.

This means the Alto now qualifies for the £0 VED band - so no annual car tax bill - and is exempt from the London Congestion Charge. But as well as making it more efficient, this technology should also make the little Suzuki better to drive.

On top of which, fuel economy is a claimed 65.7mpg and it slots into insurance group 4E (low down on the new 1-50 Group scale). Taken altogether this should mean exceptionally affordable running costs.

Here at MSN Cars towers, it's prompted us to question whether we've ever had it so good...

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"Never had it so good? You must be joking..."

Says Peter Burgess...

OK, superficially the numbers look impressive. A six grand Suzuki Alto does sound like an exceptional deal. Ten years ago the same car cost £500 more. Even in 1992 your friendly Suzuki dealer would have asked for £5,527 for a five door Alto, albeit with standard automatic transmission.

Yet you shouldn't be fooled by the headlines. Every car manufacturer offers a bargain basement model to get you in the showroom, not just Suzuki. Try this little test. What's the average price of a supermini like a Fiesta or Corsa? £10K? Or a Focus/Astra/Golf? £14K?

Think again. This is what dealers are asking for the very cheapest versions, and they reckon on you being so disappointed with those basic cars that you'll walk out with something rather nicer for you - and much more profitable for them.

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New cars are surprisingly expensive, even to those of us who write about them every day. I find it hard to imagine spending £20,000, let alone £25,000, on a regular Focus or Astra. Shouldn't that get you something a bit special? In 2012 it doesn't.

Then there are the running costs. Cover 10,000 miles a year at 40mpg and this is what it costs: 1982: £420; 1992: £460; 2002: £800; 2012: £1525.

And finally there's the horror that car insurance has become, largely down to those unscrupulous fiends with their bogus whiplash injuries. According to the AA British Insurance Index, its average quote in the early 1990s was £406. By 2002 this had risen to £728, but today it is £1,540.

While these probably won't be the figures you personally get quoted, the escalation is indicative of the general problem for everyone.

So yes, it is possible to buy a very cheap car, and well done Suzuki for trumping all your rivals. But, bah humbug, it was better in the old days.

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"£6k for a whole car in 2012 really is tough to beat"

Says CJ Hubbard...

Although it's tempting to get into the relationship between changing monetary values and buying power, let's concentrate on putting the £5,995 Alto into context today.

This is six grand for a whole car - and not from some obscure manufacturer you've barely heard of but Suzuki, builder of superbikes.

£5,995 is £695 less than you have to cough up for a Renault Twizy, which is an electric quadricycle with no doors, a limited driving range and no batteries included. The cheapest Kia Picanto is £7,795; the cheapest Hyundai i10 £8,345; the cheapest Ford Ka £8,725.

This is 2012 reality. We can't turn back the clock.

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Ok, so SZ specification isn't exactly overburdened with equipment and you only get two standard airbags (then, so does the Ka) - but some people don't care about that. They just want a brand new set of wheels.

Compare that brand new set of wheels with Peter's theoretical older models. Insurance costs you have to concede, but it's hard to think of any car powered by a petrol engine that could achieve a reliable 40mpg back in 2002, let alone 1982. The Alto's 65.7mpg may be laboratory based, but 40mpg+ should be a formality.

If we can't turn back the clock, what about spending the same amount on something used? Sticking to the relatively sensible, £6k will (just about) get you a three-year-old Fiesta.

At best said Ford will have covered 30,000 miles already; wear and tear is going to present greater reliability issues, and there's no warranty to fall back on. Your fuel bill and your tax bill will be bigger; fair enough, the Fiesta will be more fun to drive. Both cars will likely be worth around £2,000 in 36 months' time.

So if your budget is tight, you don't care about thrills but you still want to buy new then, yes, it really is tough to beat this moment in time.

But what do you think? Is this a great time to be a car buyer and motorist or would you prefer a return to a bygone era? Let us know in the comments section below...

The cheapest cars on sale
The safest small cars on sale
The most reliable family cars
The best-selling cars in each market sector
The cheapest cars to insure for 17-18 year olds