used car dealers in the UK have many reasons to smile. Their market made it through the recession without government aid and their sales are on the rise. According to a recent report, second hand car sales were up by six percent in 2009. Not to mention the fact that their competition, the new car market, is expecting big declines. There are two reasons for this. The first is that the government-run scrappage scheme that gave a two thousand pound discount to new car buyers ended in March. The second is that most automakers have been forced to raise their prices in response to the weakening pound. As you might expect, this means more expensive new cars for consumers. And since car buyers really only have two choices, it stands to reason that the used car market will benefit from the increase in new car prices. Another thing that has most car dealers smiling these days is their inventories. During the recession, most dealerships bought up scores of secondhand vehicles from desperate residents at discount prices. And as the economy rebounds, they are selling these cars and trucks for a tidy profit. Why do consumers prefer used vehicles? As you might expect, cost is the primary consideration. The average secondhand car is about forty percent cheaper than the new model. The reason for this is simple: new cars depreciate at astounding rates. According to industry figures, the average new car loses half of its value after just three years. And in a troubled economy, most consumers cannot afford to throw money away.
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