The average price for a used car rose by 5.2% in May to £5,420, according to data from the National Association of Motor Auctions.
It represents a rise of £267 on the previous month and showcases the need to look around the marketplace before making a purchase.
Nearly 104,000 units were sold in the month, down 5% from April and down 2% from the same month in 2013.
A reported drop in retail interest was linked to a period of good weather although demand for smaller cars remains strong according to NAMA.
These cars will often have lower running costs and this can help keep living costs down as well – especially given the highly volatile price of fuel.
When purchasing a used car it is exceptionally important to check the condition of the car and to look at its records.
It might have previously been in an accident or could appear on police files for numerous reasons, while any replacement parts should be matched to the car in question.
Equally important is to check the mileage of the vehicle as it will impact on how well the car runs, and potentially on whether the car could require a new engine in the future.
All documentation on the vehicle should be available and questions should be posed if this is not the case.
A HPI check will cover all aspects of the car’s history and is an essential part of the buying process while it’s also essential to haggle on price.
It’s likely the seller will have set a price a little above what they are expecting, so cutting the price down means additional money can be available for other things.
At the same time, a buyer should ask questions regarding things like fuel and MOT, as a car supplied with a full tank could save additional funding.