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Recent years has seen a fall in the availability of used cars and a consequent rise in prices. And for those wanting to purchase a used car, this latest emergency budget looks set to cause even further misery. It is going to cost used car buyers an extra three and a half percent in VAT because it is going to rise from its current position of 175% to 20%. This is bad news for an industry that was already struggling and for anyone looking for a bargain.

The fact that there was an economic crisis recently has led to problems in the car industry and it still hasn’t fully recovered. It has led to a dramatic decrease in the number of people purchasing new vehicles, and this has had a knock on effect on the market for used cars. The shortage in used cars has arisen because people are choosing to keep their old cars instead of trading them in for a brand new one. When any item is in short supply the prices will rise to meet the demand. This is what is happening here. Because there is no incentive anymore to buy a brand new car as there had been with the government scrappage scheme, it has stalled the market again.

It is difficult to predict what the future has in store for those of us on the lookout for used cars. It seems that for the foreseeable future that the prices will remain on the high side. This latest move by the government is just going to add salt to the wound. It is not as easy to find a bargain when looking for a used car as it used to be but it is still possible. Hopefully there will be a pick up soon again in the market for new cars and this will provide a new lease of life for those selling second hand motors.

Whenever you happening to be looking for used cars, you may end up much better off by thoroughly researching the cars that interest you. Good research lets you find only the best models available. When your research is done, you could very well end up with a great used skoda or even a used ssangyong.