JUST when you thought all news was bad news, here's a thought to cheer the private motorist.

If you own a three-year-old car, it's now worth over 3 per cent more than such a car would have rated at this time last year.

That's the valuation on a 1998 car that's covered the average 30,000 miles, says CAP's prices monitor.

A year after manufacturers cut prices following the 'Rip-off Britain' campaign, the prices of new cars are still continuing to fall "though at a lower rate," says CAP's economics editor Ramesh Notra.

The rate of decline has dropped from 7.6 per cent to 3.1 per cent. "In November, new vehicles were still down by 2.6 per cent against the same month in 2000."

But, he warns, they have begun to creep upwards again in some sectors. New 4x4s are up 1.6 per cent, though used examples should fetch 6 per cent more than last year.

Sports car prices have also suffered. They now cost 0.4 per cent more than a year ago, but depreciation levels have also increased.

o YOU'LL get much more for your money if you choose one of today's smaller cars, says the latest CAP Black Book.

"Superminis and small family cars have certainly increased in desirability as specifications have been lifted to come into line with their larger stablemates," says CAP's Tony Styles.

One result is that a higher-grade Focus or Astra can attract a higher price in the used-car market than the larger Mondeo or Vectra, he says.

"Lower-medium cars are more popular on the used market and can often command a higher pice than the equivalent larger model."

CAP, an independent organisation which monitors the motor industry, also confirms the point we've been making recently that smaller cars are contantly getting bigger.

"Small cars are growing bigger than ever as the trend towards comfortable but cheap motoring gathers pace," says CAP.

The trend started with drivers "moving out of the upper-medium size (Vectra/Mondeo) into increasingly roomy and luxuriously equipped lower-medium models of Focus or Astra dimensions."

Now car makers are making their superminis bigger than ever, says CAP.

"Manufacturers are 'upsizing' their smaller vehicles in terms of external dimensions, interior space and spec."

And as we remarked recently, he adds: "Each time a manufacturer brings out a new model it seems that they are trying to move the vehicle into the next sector.

"Two example are the new VW Polo and Ford Fiesta, due for launch next year, both of which are considerably bigger than their predecessors.

"Superminis and small family cars have certainly increased in desirability as specifications have been lifted to come into line with their larger stablemates."

"What were once seen as big-car luxuries are now an expectation in smaller cars.

"Even superminis are unwanted if they lack power steering. And the internal space in new cars today matches that of larger preceding models."