What’s Behind the Boom in Used Car Sales?
The used car market in the UK is currently booming. Here, we look at some of the reasons for the upturn in second-hand car sales as well as some of the advantages of buying a used vehicle.
Why is the second-hand car market doing so well?
One of the main reasons for the current popularity of used vehicles is the prevailing economic climate in the UK. Simply put, people are being more careful with the money they have and they also tend to be saving more in case of further economic decline. Brand new cars are becoming more of an expensive luxury than a matter of course.
But this isn’t the only reason that used car sales are doing so well; another is the increased reliability of modern cars. This has improved markedly over the last ten years or so and it is now common for cars with over 80,000 miles on the clock to perform just as well as they did when new. Cars made these days may well reach over 100,000 miles without developing any major faults, as long as they are looked after and serviced regularly of course. Clearly, this makes a used car a much more attractive proposition than the clapped out bangers of old.
Another reason is the improved reputation of used car dealers. The traditional ‘Arthur Daley’ types have been replaced with modern, professional vendors to whom reputation is everything. If you are unsure about whether a garage has a good reputation or not, it is worth looking online for impartial reviews from previous customers into their service and the experience they received.
Used cars are also made more attractive by the fact that more and more car makers are now offering transferable warranties with their new cars. In the past, a warranty only applied to the first owner but many can now be transferred to any subsequent owners within the duration of the warranty. The length of warranties has also increased with 7 year/100,000 mile warranties now available with some car brands.
What are the advantages of buying a used car?
The main and most obvious advantage of buying second hand is the reduced price. Even very low mileage cars can be picked up at a fraction of the new cost.
Further still, a used car will depreciate much less than a brand new one. This means that it will lose less of a proportion of its value over the same time period. So if you come to sell the car on after a few years, you shouldn’t lose out too much.
The second-hand car market can also offer a greater choice than the new market as all models and makes from years gone by are available.