The first year-on-year increase since April 2011, the figures mean an average rise of £179. Compared to the previous months, average prices for August were up 1.2 per cent too, while prices for September rose 2.9 per cent.
London and East Midlands buyers saw the biggest increases – facing a three per cent rise – followed by the South, Scotland and Northern Ireland at two per cent.
However, that’s not to say the increase means good news for dealers – as buyers begin to haggle their way through the rises. An average of £939 was haggled off sales in Q3, says AutoTrader, with men proving the best at bartering down a price.
Males managed to knock off an average £1,029 – a fair chunk more than the female average of £706.
‘For dealers, knowing what their end consumers are willing to pay for a vehicle, before they decide to buy the vehicle is critical, hence the importance of understanding the retail price index,’ commented Tim Peake, Group Strategy Director for Trader Media Group.
‘Dealers that simply use “trade plus” pricing to determine the sell price, will result in their gross profit potential being severely compromised; you have to work back from what the consumer market is prepared to pay, and minus your costs / margins from this start point.
‘Furthermore we can see different trends in wholesale and in retail prices which means dealers continually need to evaluate their prices more frequently.’