Jump to content
House Price Crash Forum
Democorruptcy

Scrappage Scheme And Car Prices

Recommended Posts

I have never bought a brand new car and my present car is not old enough for the scrappage scheme. I've been looking at secondhand prices and they seem incredibly high compared to the last time I bought in 2004.

I've recently talked to a Vauxhall and a Renault dealer who both said that the prices they are now being quoted for secondhand cars are way too expensive and their was no profit margin in them. They were both short of stock and said they were looking for new suppliers.

The Vauxhall dealer told me their new cars had gone up about £1,700 this year. I presume this was to help cover their share of the scrappage scheme and due to sterling falling?

But why are secondhand cars so expensive? Shouldn't they be cheaper with new so many offers on new cars? When the scrappage scheme ends does that mean that demand will drop and prices will fall?

Share this post


Link to post
Share on other sites
I have never bought a brand new car and my present car is not old enough for the scrappage scheme. I've been looking at secondhand prices and they seem incredibly high compared to the last time I bought in 2004.

I've recently talked to a Vauxhall and a Renault dealer who both said that the prices they are now being quoted for secondhand cars are way too expensive and their was no profit margin in them. They were both short of stock and said they were looking for new suppliers.

The Vauxhall dealer told me their new cars had gone up about £1,700 this year. I presume this was to help cover their share of the scrappage scheme and due to sterling falling?

But why are secondhand cars so expensive? Shouldn't they be cheaper with new so many offers on new cars? When the scrappage scheme ends does that mean that demand will drop and prices will fall?

As someone said, this scheme is bringing two years of extra sales over a six month period. After it's finished it should be possible to get over 2k discount and still have your car to sell.

If your car is running OK then wait until it isn't!

Also, the longer you can wait the lower emissions are likely to be.

As someone with two 15 year old cars, that's the way I see things. (I have the cash to buy new btw)

Share this post


Link to post
Share on other sites
I have never bought a brand new car and my present car is not old enough for the scrappage scheme. I've been looking at secondhand prices and they seem incredibly high compared to the last time I bought in 2004.

I've recently talked to a Vauxhall and a Renault dealer who both said that the prices they are now being quoted for secondhand cars are way too expensive and their was no profit margin in them. They were both short of stock and said they were looking for new suppliers.

The Vauxhall dealer told me their new cars had gone up about £1,700 this year. I presume this was to help cover their share of the scrappage scheme and due to sterling falling?

But why are secondhand cars so expensive? Shouldn't they be cheaper with new so many offers on new cars? When the scrappage scheme ends does that mean that demand will drop and prices will fall?

There was a point earlier this year where a few second hand models were selling for more than brand new. One was the Ford Focus.

The reason is that the "almost new" second hand supply from fleet buyers has dried up. Cars are being kept longer and run into the ground rather than replaced every year or two.

When government offers free money to people to spend its only a matter of time before prices go up and we can see this with new cars.

I have no personal experience whether the higher list prices are sticking. Years ago I bought a new car from abroad at around £4000 of list price and by the time you subtracted value of interest free credit, the £1000 discount, free metallic paint and extra £1000 discount for Motility buyers that was on offer from Vauxhall I may as well not have bothered importing.

Share this post


Link to post
Share on other sites

I think cars, both new and second hand, will get cheaper after the scrappage scheme ends. All it has done is brought forward demand for cars from next year. After it ends prices will drop.

My main advice though is DO NOT BUY A RENAULT.

Share this post


Link to post
Share on other sites

Kind of related... there is definitely a pick up in interest in new cars at the moment driven by the government urge to tax the hell out of high rate tax payers

The 50% tax or more importantly the removal of personal allowances for earners of £100k means that if you choose to take a company car you can ensure that this is taxed as a BIK and hence stays at 40%.

It reduces your overall taxable income that is subject to tax at the higher rate or £100k barrier and hence makes on a marginal basis alot of sense

If you choose an Audi or a BMW with the new econetrics ultra low CO2 emissions, the company tax is also incredibly low

Another way the UK government are helping the German economy to recover more than ours.

Having said that.. I know from experience the Audi low Co2 models are amazing

119g of CO2 per km for an A3

Thats not far off a Prius return

And far more trendy

Share this post


Link to post
Share on other sites
If you choose an Audi or a BMW with the new econetrics ultra low CO2 emissions, the company tax is also incredibly low

Another way the UK government are helping the German economy to recover more than ours.

Having said that.. I know from experience the Audi low Co2 models are amazing

119g of CO2 per km for an A3

Thats not far off a Prius return

And far more trendy

Yeah, I'm paying 125 and 185 for my two PLG cars (VED more than 10 year old cars), if I replace them with one Co2 sub 120 (35 quid road tax) vehicle that would make quite a difference. Sub Co2 120 vehicles will become much more widely available over the next couple of years.

Edited by council dweller

Share this post


Link to post
Share on other sites
Yeah, I'm paying 125 and 185 for my two PLG cars (VED more than 10 year old cars), if I replace them with one Co2 sub 120 (35 quid road tax) vehicle that would make quite a difference. Sub Co2 vehicles will become much more widely available over the next couple of years.

In terms of company car tax.. IIRC.. the car tax on a new Audi (say £25k) with low CO2 is pretty low

Approx 16% of the value - £4000

Fuel card - 16% of £15k - £2400

Hence £6400 *40% for a years travelling = £2500 (or £200 per month)

Not bad really

Share this post


Link to post
Share on other sites
I've recently talked to a Vauxhall and a Renault dealer who both said that the prices they are now being quoted for secondhand cars are way too expensive and their was no profit margin in them.

Bought an 06 car about a month ago. I paid 100 pounds more than the garage dealership paid the previous owner for it, and they provided a new MOT, year's tax (OK 35 quid) and a set of mats ;) . I was happy with the price I paid as I negotiated two different dealers (independent and franchised) down to the same price for identical models of VERY similar mileage and same age.

So it must be turnover

Edited by LiveinHope

Share this post


Link to post
Share on other sites
I have never bought a brand new car and my present car is not old enough for the scrappage scheme. I've been looking at secondhand prices and they seem incredibly high compared to the last time I bought in 2004.

I've recently talked to a Vauxhall and a Renault dealer who both said that the prices they are now being quoted for secondhand cars are way too expensive and their was no profit margin in them. They were both short of stock and said they were looking for new suppliers.

The Vauxhall dealer told me their new cars had gone up about £1,700 this year. I presume this was to help cover their share of the scrappage scheme and due to sterling falling?

But why are secondhand cars so expensive? Shouldn't they be cheaper with new so many offers on new cars? When the scrappage scheme ends does that mean that demand will drop and prices will fall?

I had a call from the Lexus garage at 7.30 pm on Tuesday night, they wanted to buy my car off me - saying they were very low on stock. I thought it was just a wheeze to get me in to flog me another one, but on checking my model their website there's only 22 used available nationwide (3 in my trim)!

Anyway appointment made and wallet dusted off ready to accept their cash :lol:

Share this post


Link to post
Share on other sites
I had a call from the Lexus garage at 7.30 pm on Tuesday night, they wanted to buy my car off me - saying they were very low on stock. I thought it was just a wheeze to get me in to flog me another one, but on checking my model their website there's only 22 used available nationwide (3 in my trim)!

Anyway appointment made and wallet dusted off ready to accept their cash :lol:

Not an advert for them but I got 15% more than the local dealer by using webuyanycar.com

Share this post


Link to post
Share on other sites

My car is just about what you would classify as a scrapage car... fully paid for, second hand value £500 to £900 there is no way I would ever consider scraping it...the tax is low the insurance is £15 per month fully comp with protected no claims and a tank of fuel £35 lasts around two weeks it is driven at least 5 days a week every day.

Less is more. ;)

Share this post


Link to post
Share on other sites
My car is just about what you would classify as a scrapage car... fully paid for, second hand value £500 to £900 there is no way I would ever consider scrapping it...the tax is low the insurance is £15 per month fully comp with protected no claims and a tank of fuel £35 lasts around two weeks it is driven at least 5 days a week every day.

Less is more. ;)

Same motor; same attitude here. Less is more...

Share this post


Link to post
Share on other sites
I wish I could believe the MPG figures for newer cars but the ranges they quote are ridiculously wide.

some of us buy cars because they are nice things. Strikes me that your

comment is like looking at a sexy girl in a club and wondering how her pension is looking

If mpg is your concern get a bike/bus/van

Share this post


Link to post
Share on other sites
some of us buy cars because they are nice things. Strikes me that your

comment is like looking at a sexy girl in a club and wondering how her pension is looking

If mpg is your concern get a bike/bus/van

Beware of the bald middle aged man driving a convertible. ;)

Share this post


Link to post
Share on other sites
My car is just about what you would classify as a scrapage car... fully paid for, second hand value £500 to £900 there is no way I would ever consider scraping it...the tax is low the insurance is £15 per month fully comp with protected no claims and a tank of fuel £35 lasts around two weeks it is driven at least 5 days a week every day.

Less is more. ;)

actually less is well less ever driven a decent car?

Share this post


Link to post
Share on other sites
some of us buy cars because they are nice things. Strikes me that your

comment is like looking at a sexy girl in a club and wondering how her pension is looking

If mpg is your concern get a bike/bus/van

I think we might be seeing an increase in oil prices so MPG is a consideration. Since the oil spike last year I think car firms are pushing the MPG as more of a selling point.

So... which "nice things" also have decent MPG?

Share this post


Link to post
Share on other sites
Bought an 06 car about a month ago. I paid 100 pounds more than the garage dealership paid the previous owner for it, and they provided a new MOT, year's tax (OK 35 quid) and a set of mats ;) . I was happy with the price I paid as I negotiated two different dealers (independent and franchised) down to the same price for identical models of VERY similar mileage and same age.

So it must be turnover

and that post explains exactly why some car salesman are excellent - the buyer's gone away thinking he's made a turn on the dealer...... :) - retail punters, they're brilliant.....

do you mind me asking, what car was it (model and spec and mileage (and colour, if it's something stupid like yellow)). Because whilst some cars are still making well over book, most are back at under it now (whatever the trade pretends).

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.