Used Car Sales for Cost Conscious DriversIn the wake of a deep recession, politicians in the UK have been searching frantically for some encouraging economic news. They finally found it when it was revealed that sales of new cars increased by 26 percent in last quarter. But is this often reliable economic indicator something people should get excited about, or is there more to the story? Unfortunately for UK citizens, there is more to the story. The fact is that the increase in new car sales can be attributed almost entirely to the government’s scrappage scheme. If you have never heard of it, the popular program offers drivers a two-thousand pound credit toward the purchase of a new vehicle if they turn in an old tin lizzie. As you might expect, this program has encouraged new buying in a troubled economy, but it won’t last. The funding for the program is expected to run out in the next few months. And when it does, experts believe that new car sales will flat line. On the other hand, used car sales have been steadily increasing for several months now. Why are used car sales on an upswing? The most obvious reason, of course, is price. Since new cars depreciate at an incredible rate, losing over half of their value in only five years, dealerships can offer them at deep discounts. And while it is true that buying a used car was once a gamble, with warranties and improved inspection methods, the chances of getting a lemon are lower than ever. For buyers who are interested in purchasing a vehicle in the private market, having the car inspected beforehand by a qualified mechanic is a must. |