Used Car Market is Hurt   no comments

Posted at 10:36 am in Uncategorized

Over the past few years the used cars sector has witnessed a drop in the amount of cashflow that is made. Used car figures were actually down by around £24 billion for the 2008 year, there were around 300k less cars sold then the previous years.

We all know that this was solely down to the credit crisis which hit the world in late 2008. People began to panic and control their money and one thing in life that people could afford to cut down on was purchasing a car and we all know that the huge majority of people chose to drive a used car because they can get more value for their money.

So what is it that occurred in 2009? And why is the used car sector still suffering? Well I consider this is all due down to the vehicle scrappage system. Although it has been beneficial in boosting the new automobile market, it has left the secondhand automobile marketplace trailing behind, the reason for this is as follows.

When people want to buy a new car they usually put their old one for sale, this then gets sold to a newbie driver who then passes it on and does the same thing. But simply because of the scrappage scheme people are instead choosing to hand in their old cars in exchange for a new.

I do expect the used car market to get back on its feet in 2010, as the scrappage scheme will not last forever I mean in the end its the government who are funding it and it has probably already costs millions of pounds to save the new car market, but on the other hand it has hurt another market even worse.

Do you want to Buy an Audi or Buy a New Mercedes

Written by ydpaar on August 23rd, 2009

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