Latest Budget Is More Bad News For Buyers Of Used Cars In The UK
29th June 2010 by Tax Man No Comments
Recent years has seen a fall in the availability of used cars and a consequent rise in prices. It now seems that the latest budget is set to make things even harder for those wanting to purchase used cars. Because of the 35% rise in VAT, those buying second hand motors will now have to shell out more money for a used car. 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 number of used cars on the market has decreased because there has been a marked reduction in teh amount of people buying brand new cars. If people aren’t buying new cars then they aren’t selling their old cars and this all leads to a shortage. When any item is in short supply the prices will rise to meet the demand. 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 now this VAT increase is just going to make things worse. It is not as easy to find a bargain when looking for a used car as it used to be but it is still possible. Hopefully there will be a pick up soon again in the market for new cars and this will provide a new lease of life for those selling second hand motors.
Whenever you happening to be looking for used cars for sale, you are always better off trying to research your vehicles beforehand. This reserach will let you find the best cars available for each category you look at. Once you’ve finished, you could find youself driving away from the dealers in a used seat or even a used subaru.
