The average amount that UK consumers paid for their used cars rose during the first quarter of 2015.
Inverness-Shire, Scotland -- (SBWIRE) -- 04/24/2015 -- Autorola, who is the UK's biggest remarketing portal, released the figures at the start of April. Their research showed that during Q1 of 2015, the average price of a used car went up from £8,484 to £8,624.This £140 increase is an important one for an industry that has been struggling to make a profit for several years. For the past five years the amount of profit made on each sale has been falling, so any increase in the average price paid is important.
There are several reasons why UK consumers are now prepared to pay more when they buy a used car. The first factor is the fact that UK consumers are feeling better off. They can see that the economy is recovering and many people have more spare cash available because of falling fuel and food prices.
People are feeling more financially secure, which means they feel confident enough to go out and make big purchases. This increase in demand is allowing used car dealers to secure a better price for the cars that they sell.
In addition, buyers of used cars are looking for slightly younger cars. During the recession, people were buying slightly older vehicles than they are now. The vast majority of the used cars for sale in Inverness dealer showrooms and in other parts of the UK are nowunder 4 years old. Most consumers are trying to buy a three-year-old vehicle, last year they wanted older, cheaper vehicles. Today, they are prepared to spend a bit more and buy a younger vehicle.
It is not yet clear whether the average price paid for used cars in the UK will continue to rise, but demand for used cars in general is expected to be high during 2015. Easier access to finance for used cars will also play a role and help more people to buy than in the past. Given the fact that increasing demand normally results in higher prices it seems likely that the average amount paid for a used car in the UK will continue to rise steadily during 2015.
For more information visit the website http://www.horsepowercars.co.uk/used-cars
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