Car buyers are willing to pay 32 per cent more for a vehicle than they were two years ago, according to new data from Auto Trader.
The company's analysts looked at cars that were three years old with between 20,000 and 30,000 miles on the clock. Examining the average asking prices for the last three Aprils, the research found that prices have risen from £16,586 in April 2013 to £21,844 in April 2015, which is taken as a sign of growing consumer confidence.
A willingness among car buyers to pay more for vehicles is a positive sign for any individual or business selling cars. However, it does not lessen their need to invest in a road risks insurance or combined motor trade insurance policy that will keep their stock protected, both when they are driving it and when it is stored at the business' premises.
Auto Trader states that it did not just look at all the vehicles listed on its site that fit the aforementioned criteria - it looked at those with the most views, indicating which ads would be most likely to generate serious leads.
Karolina Edwards-Smajda, trade solutions director at the company, said: “Our analysis implies that buyers are willing to pay significantly more for good quality cars than they were two years ago
“That might seem surprising, considering noise in the marketplace around volumes of pre-registered vehicles. However, prices haven’t softened, consumer confidence continues to improve and demand is outstripping supply.”