The price of a used car in the UK has risen dramatically lately because of the lack of used cars available on the market. And there was extra misery piled on those who wanted to buy a second hand motor by the latest emergency budget revealed just this week. VAT is due to rise from 175% to 20% and those buying second hand motors will now have to pay even more money. So for anyone who wanted to find a bargain this is bad news, just as it is for this already struggling industry.
The state of the car industry is a direct result of the recent economic downturn from which it still hasn’t recovered yet. The amount of people buying brand new cars has decreased dramatically and this in turn has led to less used cars being put back into the market. The shortage in used cars has arisen because people are choosing to keep their old cars instead of trading them in for a brand new one. When any item is in short supply the prices will rise to meet the demand. This is the case in this instance. Up until recently the scrappage scheme helped keep things moving in the car industry, but now that this government scheme is over that stimulus is gone.
So for those of us who want to buy a used car in the future, it is hard to foresee what way this will be affected. But one thing looks certain; the price of a used car will continue to stay high for quite some time. And it is just going to be worse for used car buyers now with the increase in VAT. Although you can still find a good bargain when it comes to a used car, it is not as easy as it once was. But we can just hope that the new car market will pick up and that the amount of used cars available increases.
If the time has come for you to be searching out used cars, you are always better off trying to research your vehicles beforehand. Good research lets you find only the best models available. And when you finally finish your research, you could find yourself leaving the car delears with a splendid used smart car or even a used ssangyong.
