• Tweet

We constantly hear on the news how the motoring industry is suffering badly from the recession. Every week there is a new story of how the motoring industry is suffering because people simply aren’t choosing to buy a new Alfa Romeo. However, there are sectors of the motoring industry that are doing well, but we never hear about them.

The sector of the motoring industry that is coping the best is the second hand market. Prices of used cars have been going against the flow of the recession, they have been rising. Although this may not sound very good initially as you will have to pay more for used cars for sale, however, if you are trading in, you will get more money for your old car.

The reason why the used car market has become so popular is because many people are trying to save as much money as possible. In an attempt to do this, they opt for buying a second hand car rather than a brand new one. One particular thing that has happened recently and has definitely not had a positive effect on the new car market is that prices have actually risen. You’d think that car manufacturers wouldn’t dare rising prices, however, because the exchange rates are poor, they are forced to raise some of their prices.

As a result of more people choosing to buy a second hand car rather than a new one, the demand for used cars has risen. As the demand for second hand motors rise, plus with the scrapping scheme resulting in more scrapped cars, the job of finding a good used car is becoming harder. Now because used car dealers are running out of cars to sell, they are offering more for trading in a car, making it sound like a better deal for car owners looking to sell.

The only downside is that despite they are getting more for their old cars, they are having to pay more when it comes to buying a diffrent second hand car. So because the price rises are on both sides, selling and buying, you are not actually getting any extra cash for your car because you lose it when you buy a new one, but the majority of the public would still prefer to buy a second hand motor rather than a buy an Audi straight off the production line.

The only people that lose out are the people that don’t trade in an old car.

Related articles by Zemanta

• ‘Cash for Clunkers’: A Car Buyer’s Guide (nytimes.com)
• Nissan welcomes scrappage boost (news.bbc.co.uk)
• Nice Little Motor: Used Cars ‘Go Up In Value’ (news.sky.com)

Posted under Cheap Used Cars