Customers turn to premium models

Customers paid record prices for cars in June as demand for more expensive models surged.

This is according to BuyaCar, which is predicting further rises in July despite the widespread availability of cheaper vehicles.

It found that average prices paid on BuyaCar fell to a three-year low in April – over £2,000 less than a year before. But since lockdown ended consumers have been buying more expensive cars than at any previous time in BuyaCar’s 18-year history.

Average prices paid in June reached £14,600, beating the figure in June of last year by nearly £1,000. Helping to drive the demand for better cars is continuing availability of low APR finance or PCP finance, which keep monthly payments unexpectedly low for many buyers.

Christofer Lloyd, editor of BuyaCar, said: “What is interesting about the prices our customers are paying is that it reflects their appetite to spend more on a car rather than higher prices being forced on them by the market.

“Despite the availability of many more budget-friendly options, which are still guaranteed and protected to exactly the same level as the more expensive cars we sell, it’s clear that our buyers are determined to treat themselves to a little extra.

“This is typically a slightly older car from a more prestigious brand than they may have previously bought, which is a big part of the reason that cars registered in 2015 remain the most popular buys on our site.”