The number of people planning to purchase a new vehicle over the next 12 months has grown considerably in 2014, research published by the AA has revealed as the UK car buyer market is stronger than ever.
According to the organisation’s latest Car Purchase Index, 27 per cent of the UK car buyer market plans to invest in a new vehicle this year – rising from the 11 per cent who stated they would do so in 2013.
The most popular price range for new car buyers will be from £5,000 to £10,000 (31 per cent), while 19 per cent of respondents said they plan to spend from £1,000 to £5,000 and two per cent plan to spend less than £1,000.
Meanwhile, 21 per cent will pay between £10,000 and £15,000 for a new vehicle this year and 20 per cent will spend in excess of this final figure.
The increasing likelihood of buyers venturing into the market has been put down to growing levels of confidence within the economy as a whole, with lower levels of unemployment and improvements in the housing sector serving to drive up consumer attitudes.
Mark Huggins, director of AA Financial Services, said: “Given the cost, buying a car is a decision that’s not taken lightly so it’s encouraging to see the car sales market is really picking up.
“January saw a sharp increase in the registration of new cars, up 7.6 per cent compared with January last year, which augurs well for both the new and used car markets.”
He added the majority of drivers will pay for purchases out of savings (52 per cent), while one in five buyers will take out a loan.
Financing the purchase of a new vehicle can often be a difficult task, especially for new motorists. However, the team at GSI Insurance Services (Southern) Limited pride themselves on finding the best deals on young driver insurance, meaning this is one saving they could make when taking on a new car.