The average price of a new car rose to £28,928 in March, a year on year increase of £201 (0.7%), according to figures produced by Driven Data, the independent price analysis specialist.

The average rise for the new 14-plate also marked an increase of £136, or 0.5%, over February. Driven Data managing director Martin Keighley said the increase reflected improvements in the wider economy.

“The motor industry has long been regarded as a key indicator for the state of the economy, so this may signify the start of the recovery. Many volume manufacturers have had to cut prices or rely on selling lower specification models during the recession, but these figures may indicate the start of a reversal in fortune,” he said.

Meanwhile, the average year on year price of new vans rose by £1,860 (8.8%) in March to £27,989, although this marked a drop of £67 (0.2%) compared with February. “The van market has always been more volatile than the car market. But the recovery will be business led and the overall trend is clearly positive,” said Keighley.

Original Story Taken from Motor Trader – http://www.motortrader.com/industry-news/average-car-price-rises-29k-march/