Interest in brand new cars remains strong even though retail registrations may be softening, according to Auto Trader which has recorded a 28.5% year-on-year (YoY) increase in visits to its new car platform in June.

This is a significant rise from the 22% and 21% growth recorded in May and April, respectively, and marks the largest YoY increase in over two years.

This demand is driven by a combination of increased choice and improving affordability, as brands respond to new regulatory targets, growing competition, increased production, and stalling retail sales.

As more brands and retailers release more cars, Auto Trader said it is seeing a significant increase in the volume of new cars advertised on its platform. In May, the volume grew 8% compared to April, and in the first two weeks of June alone, new car stock levels on Auto Trader have risen over 21% versus January.

While baseline RRPs continue to rise, car buyers are benefitting from a reduction in overall prices, with over half (53%) of all new car models advertised on Auto Trader showing a gradual price reduction over the past 12 months.