Insider claims "car scrap deal is a con"

The Government's Car Scrappage Scheme, much love by Gordon and Mandy, is a confidence trick, according to Car Dealers.

There is also an issue over VAT which has caused some manufacturers to delay signing up to the scheme. Under the scheme, the Government will pay £1000 of the cost of a new car, and the sales outlets provide the other £1000 discount, if you trade in a vehicle which is over ten years old and roadworthy.

  • In the current climate, almost any dealer will give you £2000 off the forecourt price anyway.
  • You cannot just go to a scrapyard, buy a banger for fifty quid and turn up at the local BMW concession. The scrapped car must have a current MOT and Tax disc, be at least ten years old, and must have belonged to you personally for12 months.
  • A new car depreciates by several hundred pounds as you drive it away (you lose £2000 of value after 88 days)
  • The insurance costs will soar.

Many cars, though officially worth less than £2000 are perfectly serviceable. The "green" dividend makes no sense either.

If the car you are trading in is worth anything near the £2000 limit, you are better off selling privately or giving it away. Insiders tell me it all adds up to a nothing deal and a con.

2 comments:

RantinRab said...

My 750 quid X plate ford escort does me just fine and dandy. If I had a spare 10k or so I would have had a newer car anyway. Load of Bollocks!

Anonymous said...

I drive an old Mondeo because I can't afford a new car. If I was able to get a new car I'd sell my Mondeo privately and haggle a discount on the new car. I'm sure I'd get at least £2k off the price.
And all these old cars won't be actually scrapped will they ? I doubt it if they are roadworthy with tax and mot. So they will still be on the road causing the same pollution.
In any case Gorgon and Lord Mandleslime are involved so give it a wide berth.