Time running out in bangers for cash scheme
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by Trevor
Sturgess
Time is running out for banger owners to drive a hard bargain
under the scrappage scheme. It is due to end on March 31, but could
end sooner if the money runs out.
Under the banger-for-cash scheme, owners of cars at least 10
years old can claim a £2,000 trade-in value against a brand new
vehicle. Half the money comes from the Government, the other half
from the dealer.
Introduced last April, the scheme has enouraged owners to trade
in more than 376,000 old cars, giving a welcome sales boost to car
dealers in Kent and across the country.
According to AA Financial Services, there are fewer than 24,000
scrappage registrations left nationwide.
The savings, car loans and credit card provider says that its
AA/Populus Car Purchase Index survey of AA members suggested that
while four per cent of 13,489 respondents said they were taking
advantage of the scheme, over a fifth (22 per cent) said they were
thinking about using it. Another four per cent had already culled
their ageing car for a new one.
Mark Huggins, director of AA Financial Services, said it was a
perfect time to trade in your old car which was worth £2,000 under
the scrappage scheme. "But when the scheme ends, its value will
simply be what you can barter on the forecourt and the chances are
it could up at the breaker’s yard in exchange for just a few
pounds."
Meanwhile, the scrappage scheme has hit used car sales which
fell by 5.7 per cent to just under 6.8m in 2009, the lowest figure
since 2000, according to data firm Experian.
Kirk Fletcher, managing director for Experian Business
Information and Automotive, said: "The recession and the scrappage
scheme have had a big impact on the used car market.
"Consumers who would have normally bought a used car were now
considering a cheaper new car through the scrappage scheme. This
resulted in smaller new cars moving into a price range that had
previously been occupied by used cars."
Sales of vans picked up in February - to 8,978 - but truck sales
(1,370) were well down, according to figures from the Society of
Motor Manufacturers and Traders.
Friday, March 12 2010
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