Though it has finally emerged from recession, the UK economy has seen brighter days. Unemployment is on the rise, the debt is at a record high, and government spending is out of control. Not to mention the fact that banks have tightened their proverbial purse strings and loans are hard to come by.
This is bad news for the average citizen, who may need a loan to purchase big ticket items like a car or a home. Of course, buying a new home can be put off until the economy improves. But what do you do if you desperately need a car for work but cannot afford one?
One increasingly popular option is to purchase cars second hand . In fact, three out of every four cars sold in the UK last quarter were used cars. Why is this? Well, when people cannot afford new cars and they cannot get loans, they naturally turn to a less expensive option.
But there is more to this story than just cost savings. The truth is that used cars have come a long way over the last few years. This is particular true when it comes to the security they offer new buyers.
Years ago, when people bought used cars they had virtually no security. If they happened to buy a lemon they were stuck with it and all of the repair bills. But these days when people buy second hand cars from dealerships they are given the option of purchasing a warranty.
These warranties protect consumers and ensure that dealerships do a much better job inspecting their cars before they offer them for sale. After all, they do not want to get stuck with future repair costs.
