Bangers for cash scheme not so tasty, warns UK leader

In the wake of the Chancellor’s recent introduction of a UK vehicle scrappage scheme, one of the country’s leading used car hypermarkets has expressed doubt over how much it will actually help car buyers.

Under the scheme, motorists buying a new car will receive a £2,000 subsidy if they trade in any car over 10 years old. This incentive is made up of £1,000 from the Government and an equal amount from the manufacturer.

The Government has done a disservice to many motorists by not extending the scheme to used cars.

“In most cases, people who drive a car that’s 10 years old or more do so because they can’t afford a newer model” said a spokesman for Carcraft. “A £2,000 subsidy doesn’t automatically put a new car within their reach. In the current climate, many won’t even qualify for finance to make up the shortfall.”

If the scrappage scheme benefitted used car buyers too, really worthwhile savings of almost 50% could be made on selected stock. This would still mean newer, greener cars on the road, benefitting both the environment and driver safety.

Compounding the situation is the fact that manufacturers are responsible for half the subsidy. In many cases, this would simply involve the dealership removing any existing discounts or incentives in an attempt to claw-back their contribution. Leaving the buyer little better off.

Most car hypermarkets already take any promotional offers into consideration when pricing stock. So comparatively, used car values will remain unaffected by any ripple effect.

Classic Car Weekly is opposed to this scheme and sent a petition to the government on behalf of their readers.