The amount of used cars available to buy recently in the UK has reduced dramatically and this has led to increases in prices. And for those wanting to purchase a used car, this latest emergency budget looks set to cause even further misery. VAT is due to rise from 175% to 20% and those buying second hand motors will now have to pay even more money. This is bad news for an industry that was already struggling and for anyone looking for a bargain.
The fact that there was an economic crisis recently has led to problems in the car industry and it still hasn’t fully recovered. 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. 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. And whenever the supply of an item drops, the price automatically rises. And that is what is happening in this case. The government scrappage scheme was starting to get things moving again but when that ended so too did the incentive to buy a brand new car.
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 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. The only thing we can do is to hope that something good happens in the new car market so that it is given a boost; that way we might have more used cars to choose from.
If the time has come for you to be searching out used cars for sale, you may end up much better off by thoroughly researching the cars that interest you. Researching allows you to find the very best used cars for the category you are looking for. 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 subaru.