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The amount of used cars available to buy recently in the UK has reduced dramatically and this has led to increases in prices. It now seems that the latest budget is set to make things even harder for those wanting to purchase used cars. VAT is due to rise from 175% to 20% and those buying second hand motors will now have to pay even more money. So for this already struggling industry this news has come at a bad time and those wanting to pick up a bargain will struggle now.

 

The fact that there was an economic crisis recently has led to problems in the car industry and it still hasn’t fully recovered. The amount of people buying brand new cars has decreased dramatically and this in turn has led to less used cars being put back into the market. 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 hard to picture what the future holds for those who want to buy a used car in the future. It looks as though the prices of used cars are going to remain high for quite a while. And now this VAT increase is just going to make things worse. It is still possible to get a good deal on used cars but it is getting harder by the day. 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.

 

When you think it’s time to look out 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. Once you’ve finished, you could find youself driving away from the dealers in a used seat or even a used ssangyong.

House prices will crash more than 20pc in two years due to Government cuts,
tax rises and a surge in unemployment, says leading economic forecaster.

Source: House prices ‘to crash 20pc by 2012′ as Budget bites, says Capital Economics

Cuts in government support for housing associations in England risks pushing
them deeper into debt and enforced property sales, says Moody’s in a
post-Budget assessment of the social housing sector.

Source: Housing Association funding cuts ‘could leave thousands homeless’

property

Are you a UK-based property investor. I’m on a property newsletter and this came in which I have to alert all of you to…

Peter Esders, a property lawyer, said ‘Just to confuse things even more I was at a Budget review breakfast yesterday and the view of the speaker was that CGT may have a further rise in the normal budget in April. The coalition document states that they will raise CGT rates to ‘Similar or close to those applied to income’ and the budget the other day said that the rate for 2011-2012 will be decided by the Chancellor in the future.’

Something all property investors ought to keep in mind.

What’s a first-time buyer’s vote worth?

Source: Budget 2010: First-time bribe could buy a million votes from would-be homeowners

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