The Current State of the Used Car Industry

Look on used car websites and you begin to notice anew cars seem so appealing that people rushed to
trend. There is a shortage in the number of used carsscrap there old cars in return for a shiny new one.
on the market which has led to dramatic price hikes. InTherefore, those that would have otherwise sold on
fact, the price of a used car has increased by atheir older cars to fund the purchase of their one
colossal 30% over the past year. This change in thevehicle have decided to have them scrapped -
market has occurred because of themeaning that the used car market has been severely
government-funded Scrappage Scheme.depleted.
In an effort to kick-start the failing new car market theInevitably, because of the lack of supply, the demand
government decided to inject some much neededhas increased and therefore prices have seen a
funds into this industry The Scrappage Scheme gotsignificant rise.
underway in May and has been since hailed as aIn some cases, because of the great deals available
success.on the Scrappage Scheme, some people have been
The scheme not only increased new car sales, butable to buy a brand new car for less money than the
also helped to get old, dirty cars off the road. So thesame model a year old.
scheme has also benefited the environment as oldThis has meant that people looking for a bargain first
gas-guzzlers have been replaced by new fuel-efficientcar are really struggling to find one. The likes of the
cars.used Vauxhall Corsa and the little Ford Ka have been
The Scheme has been so successful that it has evenscrapped in their thousands - both of these cars have
been extended until next year. Ford and Vauxhall havealways been a firm favourite among young first-time
benefited the most during the scheme, in particulardrivers as they are cheap to insure and run.
they saw great sales figures during the all importantAs the Scrappage Scheme has been extended the
59' plate launch month.used car market won't really change until next Spring
However, although the scheme has helped local carat least. Once all funds have been exhausted then we
dealers - and the larger manufacturers in particular, itwill be able if the market returns to it usual state...but
certainly hasn't benefited used car hunters.then perhaps new car sales will fall once again...
The Scrappage Scheme made the prices of brand