Used Cars – Good Time to Get One!
Although the global recession may be bad news for new car salesmen, it appears that their used car counterparts are set to see business boom. The impact of the global recession is one reason why buyers are turning away from expensive large new vehicles, looking instead to save cash by buying smaller ‘nearly-new’ vehicles at significant savings. All that means that the used car market may well buck the recession trend, as the number of vehicles changing hands increases as people try to find a more economic model for their changed circumstances.
But although the number of UK used cars sold is likely to increase, their values are dropping, which means that anyone looking for a bargain should get to the garage forecourts now. According to industry valuation experts Glass’s Guide, a three-year old car is now only worth 38 per cent of its original list price. Glass’s believe that rapid depreciation being outdone by inflationary price rises is fuelling the drop. Despite brand new vehicle list prices rising by an average of only 2% over the last year, used car values are dropping and there is also anecdotal evidence that swingeing tax increases and rapidly increasing fuel costs are also having a massive impact, particularly on the ‘gas guzzlers’.
Despite the government agreeing to reverse their decision to impose backdated road fund licence increases on older, larger-engined vehicles; the damage has already been done. As such, larger 4 x 4 vehicles affectionately known as ‘Chelsea tractors’ are being rapidly dispensed with as people switch to vehicles that are cheaper to run, forcing a glut of larger second hand vehicles onto the market.