Prestige Used Cars Sales

While politicians predictably cheered the news that the UK had emerged from recession, economists were less optimistic. After all, the economy had only expanded by a paltry 0.3 percent, less than expected, and other indicators conveyed decidedly mixed signals. For example, the housing and car markets have remained stagnant.

Of course, you'd never know that if you watch the news or read the papers. They've all been telling us that the car market is on the fast track to recovery. However, what they neglect to mention is that all of the gains can be attributed to the government's scrappage scheme.

This popular program offered a two-thousand pound credit toward the purchase of a new vehicle to anyone who traded in a clunker that more than a decade old. As you might expect, drivers came out of the woodwork and unloaded old heaps in place of brand-new shinny cars. So, the program has clearly distorted the sales numbers for new vehicles to such a point that they cannot possibly serve as a reliable indicator. What about prestige used cars ?

While most experts believe that new car sales have remained essentially flat when you discount for the scrappage scheme, second-hand car sales have surprisingly increased. In fact, the sales of used cars account for nearly three-quarters of all car sales. The reason for this is simple: when the economy is in trouble people seek out a low cost solution to satisfy basic needs, like transportation.

It is also a fact that used cars sales have been on the rise for over a decade, ever since dealerships started offering full and partial warranties. This means that buyers no longer have to worry about getting stuck with a lemon because the dealerships are now responsible for most repairs.

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