For the past 12 months, every piece of news about the motoring industry has been about how it’s been so badly effected by the recession. Atleast once every week the same story is reported, how the motoring industry is collapsing because the public aren’t choosing to buy a new Alfa Romeo. However, although there are very few, there are some sections that actually doing well during the recession.

The second hand car market is one of the few parts of the motoring industry that has grown because of the recession. The prices of second hand cars have been doing the opposite to many things in the recession, they have been rising. This may not sound very positive for the customer because you will have to pay more for used cars for sale, however, if you are trading in, you will get more money for your old car.

The main reason why the second hand car market is becoming so busy is that many people are trying to save their cash, while still having a car. One effective way of doing this is to buy a second hand car rather than a new one. One thing that hasn’t helped the new car market is that the prices have actually risen due to the recession. You’d think that car manufacturers wouldn’t dare rising prices, however, because the exchange rates are poor, they are forced to raise some of their prices.

Due to the rise in people buying used cars rather than new ones, the demand for second hand cars has seen a considerable rise. As the demand rises, and with the scrappage scheme in place, it’s becoming harder to buy a second hand car. Now because used car dealers are running out of cars to sell, they are offering more for trading in a car, making it sound like a better deal for car owners looking to sell.

The only downside to this is that because you are getting more money for your old car, you are having to pay more when you buy your new used car. So because the price rises are on both sides, selling and buying, you are not actually getting any extra cash for your car because you lose it when you buy a new one, but the majority of the public would still prefer to buy a second hand motor rather than a buy an Audi straight off the production line.

The only people that look to lose out from the price rises are the customers that choose to not trade in an old car.