The used car market in the UK continues to confound the experts. When new car prices were sinking like a stone in the midst of the global recess, the secondhand market somehow stayed afloat. In fact, used car sales increased by six percent in 2009. But that's not the only reason why the average used car dealer is smiling these days. Not only is the used market on the rise, but its sole competitor, the new car market, is expecting big declines. There are two reasons for this. The first is that the government-sponsored scrappage scheme came to an end in March. This program provided a discount of up to two thousand pounds to all new car buyers. As you might expect, the scheme increased sales and carried the industry through the recession. The second reason why the market is anticipating a decline is that automakers have had to raise their prices due to the weakening pound. That means that the average cost of a new car may rise by as much as fifteen percent by the end of the summer.
As a result, the used car industry is expected to continue its run with another increase in sales in 2010. Why do people prefer used cars? It's not as easy a question as you might think. After all, used cars were considered a gamble not too long ago. But when used car dealers started offering full and partial warranties, consumers started giving them a second look. These warranties provided buyers with some security against the dreaded lemon. They also ensure that the dealerships would do a better job testing their vehicles before they put them up for sale.
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