Used Cars Becoming More Popular Than New Cars   no comments

Posted at 6:36 pm in manufacturing,precision parts

Within the past year, all we have heard is how the motoring industry is being his so hard by the recession. Almost every week you read how the motoring industry is struggling due to the fact that people aren’t going to buy a new BMW. However, there are sectors of the motoring industry that are doing well, but we never hear about them.

The part of the motoring industry that is doing the best is the used car market. The prices of second hand cars have been doing the opposite to many things in the recession, they have been rising. This may not sound very positive for the customer because you will have to pay more for used cars, however, if you choose to trade in your old car, you will get alot more money for it than previously.

The reason why the used car market has become so popular is because many people are trying to save as much money as possible. One effective way of doing this is to buy a second hand car rather than a new one. One recent thing that definately hasn’t helped the position of the new car market is that due to the recession, new car prices have actually gone up. You would have thought that manufacturers would never even consider raising car prices, however, as a result of poor exchange rates, they have been forced to.

As a result of more people opting for used cars, the demand for these second hand cars has seen a dramatic rise. As the demand for second hand motors rise, plus with the scrappage 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 a Honda straight off the production line.

It appears that the only customers that will lose out as a result of the price rises is people that don’t trade in an older car.

Written by ydpaar on September 9th, 2009

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