While news that the UK economy had finally emerged from a protracted recession was celebrated by politicians and pundits alike, the average citizen remains apprehensive. Perhaps that is because he knows that the economy grew at an anaemic rate of 0.1 per cent, which was less than what was expected. Or perhaps it is because he knows that consumer spending has failed to keep pace with recent estimates. But whatever the reason, we do know that UK residents are saving their pounds and pence and are foregoing any major purchases. This undeniable trend has had a major impact on the sales of big ticket items, such as cars and homes. However, there is one market that has strangely shown some improvement over the past few quarters. We are talking about buying a car used . Why have sales of second-hand cars increased? Well, there are a number of simple explanations for what might seem, prima facie, to be an anomaly. To begin with, cars are not like homes. After all, if you have a roof over your head then you don’t necessarily need a new home. However, if your car breaks down, then buying a car used is a necessity. But why buy a used car? For one thing, used cars are much less expensive than new ones. This is due to the fact that new cars depreciate at incredible rates. According to industry insiders, the average new car loses fifty per cent of its value in the first five years of ownership alone. That means that you can often find a used car that is only half a decade old for a little more than half the price of a new one (including dealer fees). Finding a used car is also a cinch with the help of the internet. There are scores of reputable car selling website that let shoppers search their vast databases for free. All you need to know is the model you are interested in and what you are willing to spend. The website will then provide you with a multitude of listings from both dealerships and private sellers.
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