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 for those wanting to purchase a used car, this latest emergency budget looks set to cause even further misery. Because of the 35% rise in VAT, those buying second hand motors will now have to shell out more money for a used car. This is bad news for an industry that was already struggling and for anyone looking for a bargain.
The state of the car industry is a direct result of the recent economic downturn from which it still hasn’t recovered yet. It has led to a dramatic decrease in the number of people purchasing new vehicles, and this has had a knock on effect on the market for used cars. When people don’t buy brand new cars, they have no need to get rid of their old cars so that is why there is a shortage. The price of anything that is in short supply will automatically rise. This is the case in this instance. Because there is no incentive anymore to buy a brand new car as there had been with the government scrappage scheme, it has stalled the market again.
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. It looks as though the prices of used cars are going to remain high for quite a while. And now this VAT increase is just going to make things worse. 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.
When you think it’s time to look out for used cars, you are always better off trying to research your vehicles beforehand. Good research lets you find only the best models available. Once you’ve finished, you could find youself driving away from the dealers in a used skoda or even a used suzuki.