For the past 12 months, every piece of news about the motoring industry has been about how it’s been so badly effected 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 Alfa Romeo. However, despite rarely hearing about them, there are a few sectors of the motoring industry that have not been affected by the recession.
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. This may not sound very positive for the customer because you will have to pay more for used cars, however, if yu are going to do a part exchange, you will find you will get alot more for your old car.
The reason why this part of the industry has become popular is that people are trying to save as much cash as they can. In an attempt to save as much as possible, they are deciding to buy a second hand car rather a fresh, new one. One big thing that hasn’t helped the new car market recover is that recently, prices have risen because of the recession. 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.
Due to the sudden rise in popularity for second hand cars, the demand for them has risen massively. As the demand rises, and with the scrappage scheme in place, it’s becoming harder to buy a second hand car. 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 to this is that because you are getting more money for your old car, you are having to pay more when you buy your new used 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 just as it’s rolled 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.
