Budget impact on used car buyers
THE pre-budget report next week is set to have a significant impact on the used car market with VAT expected to return to 17.5 per cent in January and the impending conclusion of the scrappage scheme.
With costs set to rise, RAC is recommending that motorists take care when buying a used vehicle to avoid being stung by hidden costs.
The average used car now costs £6,021, an increase of £1,278 (27 per cent) over the past year according to British Car Auction statistics. This year-on-year increase has also been mirrored in commercial vehicles which now costs on average £7,616, over 30.5 per cent (£1,749) more than in 2008.
Despite slight price decreases over September and October, the used car marketplace is still unsettled with several upcoming government announcements likely to have an impact.
Recent research from RAC also demonstrates that the maintenance costs for second hand cars can be up to 115 per cent higher than new vehicles so it’s now more important than ever for consumers to do their homework before buying a used vehicle.
With cars becoming increasingly complex, RAC recommends would-be buyers seek an expert opinion through a professional inspection to safeguard their investment.
RAC data shows that 48 per cent of vehicles inspected during 2009 displayed MOT-related defects.
Adrian McCarthy, RAC head of technical service, said: “The used car market is fairly unusual at present with prices having fluctuated over recent months. Finding a good quality and reliable second hand car can be a challenge.
“It’s vital that would-be buyers carry out a thorough inspection of any vehicle.”
