The first question that any car buyer must answer is whether they want a new car or a used one. The question became a lot easier for residents of the UK when the scrappage scheme was introduced in May of 2009. Under the government-funded program, any car buyer who traded in an old clunker would receive a two-thousand pound discount off the purchase of a new car. Not surprisingly, the scrappage scheme was a big hit with consumers. According to the dealerships, it led to ten consecutive months of growth. Over 400,000 new cars were purchased and traded-in under the plan, which accounted for a twenty percent increase in sales. The scrappage scheme finally ended in April and car shoppers are left with the same old question—new car or used one? The benefits of buying a secondhand car are simple—they're cheaper. The average used vehicle is about thirty to forty percent less than a new model. This is due to the fact that new cars depreciate at an incredible rate. Believe it or not, the average new car loses over half of its value in just five years. Perhaps that is why used cars sales remained steady even during the recession. Cheapest car sales for secondhand vehicles actually increased by 6 percent in 2009. The new car market, on the other hand, has held up much better than expected without the help of the scrappage scheme. Most industry insiders were predicting a precipitous decline, but sales were up by 10.8 percent in June. This may be a sign that consumers are gaining confidence in the economic recovery. Which should you buy? If you are looking for a cheap vehicle, a used car is undoubtedly the way to go. Just make certain that you purchase a comprehensive dealership warranty. This will protect you in the unlikely event that there is something wrong with the vehicle.
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