Press Release: Nearly new cars offer best value for money over Scrappage Scheme

 August 4, 2009.

Nearly new cars offer best value for money over Scrappage Scheme

Don’t have a car which qualifies for the Government’s Scrappage Scheme? Don’t fret, if you opt to part exchange your old vehicle and buy a nearly new *vehicle instead you can save loads more.

While a nice £2,000 deduction from the RRP price of a car sounds good, new cars plummet in value as soon as they hit the tarmac losing on average half of the value of the vehicle within three years**. Most dealers would expect to make generous discounts off the list price and research has already shown the scheme in some cases is not the best deal for consumers***.

With the Scrappage Scheme money expected to run out long before the official close in March, many customers could find that they are back in the real world, buying cars without Government cash.

In fact it has been suggested that the funding for the scheme could run out as early as October****, shortly after the new 59 plate comes out, a prime time for buying new cars.

Even with smaller cars, which are the most likely to make economic sense to buy under the scheme, it can still work out a better deal to sell your used car and buy a pre-registered or nearly new one instead, leading car deals website, SaveMoneyOnCars.co.uk advises. Taking an example, one of the most popular cars bought under the Scrappage Scheme is the Kia Picanto. This car is available for £4,495 under scheme. However if you opted to buy used a 2006 registration Kia Picanto with a measly 16,000 miles on the clock is available from £2,999!

Or take the Ford Fiesta, available to Scrappage customers for £8,595 for the basic model, but available on SaveMoneyOnCars.co.uk for just £7,999 for the top of the range Zetec, 2008 registration with 23,512 miles on the clock.

As a final example the Vauxhall Astra Life 1.4 I available for £8,495 under the Government Scheme. Alternatively you could opt for a 2007 registration Astra Energy 5dr with 34,000 miles on the clock for £6,999*****.

On top of this, factor in the trade-in value for your old car and savvy car buyers who forego the Government cash could be laughing all the way to the bank.

Marketing Manager, Richard Lawton says: “Consumers should research the market thoroughly rather than assume that the Scrappage Scheme offers the best route to buy their next car. They could find better deals by opting to buy a nearly new car instead.

“Using a website like SaveMoneyOnCars.co.uk allows car buyers to check thousands of cars from main dealers, brokers and car supermarkets in one fell swoop.”

                                                           -END-

Notes to Editors:

1. * Nearly new defined as a vehicle up to three years old.
2.** Research from Brewin Dolphin Investment Banking shows that many cars lose a third of their value in the first year alone, rising to 50 to 65 per cent over three years. See ThisIsMoney.com for more details: http://www.thisismoney.co.uk/bargains-and-rip-offs/article.html?in_article_id=483119&in_page_id=5
3. ***Research from consumer organisation, Which? has shown that car buyers could in some circumstances be better off selling their old car and buying a used car. A spate of prices increases from many carmakers effectively swallows up a lot of the incentive. Other issues include high finance APRs and being tied to buying from a main dealer, missing out on the discounts available from other outlets such as brokers and car supermarkets. Factors such as the value of your old car and the value of the planned new purchase should be taken into account before assuming you are getting a good buy. See the Which? guide to the scrappage scheme: http://www.which.co.uk/advice/car-scrappage-scheme-explained/scrappage-scheme-qandampa/index.jsp
4. **** According to Government figures obtained by 4Car, 121,737 cars and vans have been placed under the scheme by the 20 June, just two months after the scheme started. With only a £300 million allotted to the scheme, only 300,000 vehicles can be purchased through it. At the current rate of take up, the money could run as early as October. See: http://www.channel4.com/4car/news/news-story.jsp?news_id=19377 or Paul Everitt of the SMMT quoted in the Guardian: http://www.guardian.co.uk/business/2009/jul/06/government-car-scrappage-scheme-funding
5. ***** All deals advertised on SaveMoneyOnCars.co.uk on the 23/07/2009/. Deals are subject to advertiser’s own terms and conditions. SaveMoneyOnCars.co.uk is not responsible for the availability of advertised deals.

About SaveMoneyOnCars.co.uk: Independently verified by HITWISE as one of the top five busiest sites for new and nearly new car offers in the UK. With thousands of car deals updated daily from a huge range advertisers, including many well-known car supermarkets, main dealers, independent dealerships and brokers across the UK. With 400,000 users a month and 1.5 million page views a month, it is widely recognised as one of the biggest drivers of visitors to websites in the automotive retail sector.

SaveMoneyOnCars.co.uk are owned and maintained by Really Good Domains Ltd, who runs more motoring websites than any other company in the UK. As the UK’s largest motoring related internet advertising and marketing company, Really Good Domains also run the popular websites ContractHireAndLeasing.com, TheVanWebsite.co.uk, RoadTestReports.co.uk, CarSupermarkets.co.uk and FleetDirectory.co.uk to name a few. For more information please visit www.ReallyGoodDomains.com or call 0161 482 7650.

Contact: Faye Sunderland at  fayes@reallygooddomains.com or call 0777 972 3385. Really Good Domains, Domain House, 4 Watchgate, Newby Road, Hazel Grove, Stockport, SK7 5DB.

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