(1888PressRelease)
May 02, 2009 - Buyacar.co.uk’s Alex Davis has looked at the details and explains why, for most car owners, the reality of the car “scrappage” scheme is not necessarily all it’s cracked up to be.
Buyacar.co.uk is advising its customers to be shrewd when considering the scrappage scheme and to think logically about the potential savings that they could forgo if they take up this scheme. Whilst we appreciate the government’s sentiments in trying to stimulate the new car market, the main beneficiaries will be the manufacturers, in increased sales from those people who haven’t looked at the bigger picture and the government, in increased tax revenue.
The basic facts about “scrappage”
1. In exchange for scrapping your old vehicle and buying a new one the Government and the vehicle manufacturer will contribute up to a total of £2,000 towards the purchase of a new vehicle. That’s effectively £1000 each.
2. The scheme starts on May 18th 2009.
3. The scheme is open to cars or commercial vehicles up to 3.5 tonnes.
4. To be eligible, the vehicle you scrap must have been first registered on or prior to 31 July 1999.
5. To use the scrappage scheme, the owner must be the registered keeper of old vehicle for at least 1 year and the vehicle must have an up to date MOT or currently on Statutory Off Road Notification (SORN).
6. The scheme will be available to the first 300,000 eligible claimants or until 31 March 2010, whichever is sooner.
You will still be better off buying a new car from Buyacar.co.uk
1. The major unpublicised floor in the scheme is that the £2000 scrappage discount applies to vehicles sold at “list prce” which is effectively the manufacturer’s recommended retail price or RRP. Buyacar.co.uk currently show savings on 5017 new vehicles of which only 946 vehicles have a saving of less than £2000 of the RRP. The average saving made by our customers being over £3000 with a maximum saving of nearly £15,000.
2. Buyacar.co.uk are still offering part exchange for vehicles over 10 years old so, for example, if your car is worth £500 to us in part exchange then the real discount offered by using the government scrappage scheme is only £1500.
3. Buyacar.co.uk still offers full part exchange valuations on vehicles registered after 31 July 1999.
4. For all new car orders placed with Buyacar.co.uk you will receive a voucher for 2 Weeks free advertising on the Auto Trader network. So you can still sell your 10 year old car. Don’t forget that just because the government is incentivising you to scrap your 10 year old car it doesn’t mean it’s worthless. In fact you car must have a valid MOT to qualify for the scheme which, by definition, makes it worth something.
5. The scheme does not apply to pre-registered cars. Pre-registered cars are brand new cars that have been registered to take advantage of volume sales discounts. Pre-registration is a common practice within the new car market and can show customers huge savings on brand new cars that simply have the supplying dealer listed as the first registered owner. Cars that fall into this bracket will have to be ignored by any customer wishing to use the scheme.
It is true that, since its announcement, the scheme has generated interest in the new car market. It remains to be seen whether this will result in higher sales.
Don’t be fooled in thinking that this is a “green” initiative, it is not. The production of any new car produces a large amount of CO2 and you are permitted to buy the biggest gas guzzler you want through the scheme.
We urge our customers to do their homework, compare deals and to be aware that this is not a simple giveaway. The scheme adds more complexity to the new car buying process but remember that the most important figure to consider remains the same… the overall cost to change.
Finally, a real example from a Buyacar.co.uk customer that has placed an enquiry today (27/04/09). Mr Bloggs has a Volkswagen GOLF 1.6 H/b 5d CL registered in 1997(P) with 100000 miles on the clock and would like to buy a new Ford Fiesta 1.4 Titanium 5dr.
Without scrappage
Mr Bloggs contacted Buyacar.co.uk with an interest in the scrappage scheme. He has a Volkswagen GOLF 1.6 H/b 5d CL registered in 1997(P) with 100000 miles on the clock. We offered him £400 in part exchange against a new order. Mr Bloggs is interested in buying a Ford Fiesta 1.4 Titanium 5dr which is being supplied for £11076, showing a saving of £2600 off list price.
Taking into account the allowance for his part-exchange, Mr Bloggs will be paying £10676 for his new Ford Fiesta with Buyacar.co.uk.
With scrappage
Mr Bloggs walks into a Ford showroom who are participating in the scrappage scheme. By default his VW Golf is valued at £2000.
The Ford Fiesta is quoted at £14115 with metallic paint which is the “list price” or RRP of the car. If he continues along this path, Mr Bloggs will drive away with his new Ford Fiesta 1.4 Titanium 5dr having paid £12115.
Conclusion
Mr Bloggs is £1439 better off buying his new car through Buyacar.co.uk
A bit more about Buyacar.co.uk
Buyacar.co.uk was launched in November 2002 but has been involved in the motor trade since 1967. We were one of the first companies in the UK to offer new cars for sale over the internet. Since 2002 we have built solid relationships across the car industry and offer Dealer Management software and support services to the car industry as well as to buyers.
Our user-friendly site also has a totally unique way of searching for cars by “feature” rather than make and model so, if our customers aren’t sure what car to go for, www.buyacar.co.uk will help them make the right decision. We offer independent and customer posted reviews, over 5000 new cars to buy and, because we are 100% self-funded, we can focus on providing un-biased support to customers looking to buy a new car.
For any further information or quotes please contact Alex Davis at Buyacar.co.uk
Tel: 0208 987 5465 Email: alex.davis ( @ ) buyacar dot co dot uk
*exceptions may include Audi, Volkswagen, Toyota, BMW, Skoda and Mini. We will update our customers as soon as we have further information.
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