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.