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Cash for old bangers deal...good or bad?

If anyone is considering going for this offer, could I kindly ask you to post your experiences on here over the next month or so.
I have an old Smart Car that I use as a run around (almost 10 years old now...I can't believe it!) and my sister has a 14 year old Honda Civic so we are both considering taking up the offer.
I've heard it's not quite as sweet or straight forward as is being suggested.
Thanks.

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    I've read up on it a bit because my sons car is becoming expensive to maintain. Unfortunately it's only nine years old (this year) and doesn't qualify.
    The basic principle is: your ten or more year old car goes for scrapping. The Gov. give you £1000 toward a brand new car. The dealer must give you at least £1000 off the car (some are giving more). The Gov. part is not quite as generous as it looks. Because all new cars attract VAT and this is paid to the Gov.
    If we can believe the adverts in Sundays papers, many manufacturers are offering some cracking deals.
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    edited May 2009
    My concern is that this scheme was aimed at people / families on lower incomes, as (presumably) they are more likely to drive the older types of car in question. Considering that a new car is going to be a minimum of £6k-£7k, even the £2k reduction (50% gov / 50% dealer) is still going to leave a shortfall of £4k-£5k for this theoretical family to come up with. If on lower incomes, this is still a fair chunk of cash to find.
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    [cite]Posted By: SoundAsa£[/cite]If anyone is considering going for this offer, could I kindly ask you to post your experiences on here over the next month or so.
    I have an old Smart Car that I use as a run around (almost 10 years old now...I can't believe it!) and my sister has a 14 year old Honda Civic so we are both considering taking up the offer.
    I've heard it's not quite as sweet or straight forward as is being suggested.
    Thanks.

    it's not a good deal - i have a little peugeot 106 that was my first car and want it scrapped - I heard of this deal and thought wicked - but then Dealer's are so much more expensive - i bought my fiat punto privately for 2k so no longer need a new car - useless PUG 106 now worth £250-300 going for repairs and parts (i'll put it on ebay i think)
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    [cite]Posted By: Cipollini[/cite]My concern is that this scheme was aimed at people / families on lower incomes, as (presumably) they are more likely to drive the older types of car in question. Considering that a new car is going to be a minimum of £6k-£7k, even the £2k reduction (50% gov / 50% dealer) is still going to leave a shortfall of £4k-£5k for this theoretical family to come up with. If on lower incomes, this is still a fair chunk of cash to find.
    for the reasons you say I don't suppose it can be targetted at lower income people ...a lot of people are quite happy to stick with the same car while it works adequately (that's the metaphorical boat I am in anyway) so I guess there must be people it will appeal to - although encourging the scrapping of something that works is not great in my eyes.

    As for the deal, can you negotiate your price with the dealer and then get £1000 off that, or is it £1000 of the list price? If the latter, then it is a not a good deal since you should usually be able to negotiate at 10-15% off the list price anyway.
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    Also, don't forget the insurance side of things. Your son or daughter may have an older car insured for third party or T.P F&T only. If they trade in for a nice shiny new one it will need fully comp. and if they're under 25 it isn't cheap!
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    Soundas I have taken up the offer and ordered a new car to replace my 11 year old Clio. I needed another small ish car and checked out Ford Fiesta, Vauxhall Corsa and Renault Clio. The only manufacturer including their base model in the scrappage scheme was Renault. The 1.2i Extreme 3 door with a list price of £9995.This model is on offer under the scrappage for £6495 on the road. Before this scheme was proposed I was looking at 2 - 3 year old cars from Cargiant who are pretty competative for around £6000 with of course no warrenty or tax included and only residual manufactures warrenty at best. I think its a cracking deal in my case. Hope this helps. The paperwork was piss easy by the way.
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    [cite]Posted By: Daggs[/cite]I've read up on it a bit because my sons car is becoming expensive to maintain. Unfortunately it's only nine years old (this year) and doesn't qualify.
    The basic principle is: your ten or more year old car goes for scrapping. The Gov. give you £1000 toward a brand new car. The dealer must give you at least £1000 off the car (some are giving more). The Gov. part is not quite as generous as it looks. Because all new cars attract VAT and this is paid to the Gov.
    If we can believe the adverts in Sundays papers, many manufacturers are offering some cracking deals.

    Daggs - heard on the radio this morning that Nissan are extending the offer to cars over eight years old. So if you fancy a Micra ;-)
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    Yes but there seems to be some uncertainty here.
    Can you go into a show room and do a deal on any model or is it only certain models in the range of that particular manufacturer.
    Secondly.....do you negotiate a rock bottom deal with them....get it in writing and then hit them with the 'old banger' scenario which to all intese and purposes entitles you to a further £2,000 off?
    In other words, are they 'obliged' to accept the old banger deal?
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    Its not a compulsory scheme for manufactures and if they participate they can decide which cars in their range to include. Thats why for me wanting a base model super mini Renault were the best option.
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    You cant negotiate a discount and then hit them with the scrappage deal. They decide what the scrappage deal they will offer in terms of which models and the on the road price.
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    I walked into a dealers in sidcup and asked what the BEST SELLING price was on the £27,995 car in the window, with no hesitation he offered 17.5% . I believe if you cant barter a grand discount on a brand new car give me a shout and we'll go 50/50 on any saving I make on your new car.
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    From all of this so far, I'm having a bit of confusion as to whether you can nigh on negotiate a £2,000 saving on list price anyway.
    Call me thick but what's the point if you can do a £2,000 deal anyway...they obviously aren't gonna give you an extra 2 grand are they!
    By the way, many thanks for the input and I look forward to more info and experiences(good or bad) as time goes by.
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    [cite]Posted By: SoundAsa£[/cite]From all of this so far, I'm having a bit of confusion as to whether you can nigh on negotiate a £2,000 saving on list price anyway.
    Call me thick but what's the point if you can do a £2,000 deal anyway...they obviously aren't gonna give you an extra 2 grand are they!



    Why not? In life you often get what you negotiate. The worst you can do is ask and get told no.

    I'm just wondering about one or two unintended spin-offs, in particular there are a lot of older cars that are often untaxed/uninsured, on the basis that it's not worth taxing and insuring a car that's worth less than a tax disc let alone the insurance. Presumably as a consequence the number of untaxed/uninsured bangers on the road will fall?
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    In the case of my order for a Renault Clio 1.2 Extreme The list price is £9995. The manufacturer discount is £2500 plus £1000 from government making on the road price of £6495. I am not sure if the £2500 would be available outside of the scheme. Don`t see why not but the £1000 from government of course would not. Renault like other manufactures have not included all their models in the scheme.
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    Its an EEC scheme implemented by the UK Gov.

    On the basis , there is no thing as a free luch, I am sure its of very little value. Maybe a way for dealers to clear stock and manufacturers to clear fields full of unsold models.
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    [cite]Posted By: Nelsenout[/cite]Its an EEC scheme implemented by the UK Gov.

    On the basis , there is no thing as a free luch, I am sure its of very little value. Maybe a way for dealers to clear stock and manufacturers to clear fields full of unsold models.

    The order for my car is for a car not yet built hence delivery date of end of july ! Am sure not all deals will be good but some certainly are. Never look a gift horse and all that ?
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    edited May 2009
    CARGIANT
    2006 Renault Clio 1.2 Extreme 3 dr........12000 miles ...No warrenty.......£5,699 plus, £90 admin fee

    SCRAPPAGE SCHEME
    2009 Renault Clio 1.2 Extreme 3 dr........0 miles ...3 YR Warrenty, 2 year breakdown cover, Taxed.......£6,495


    As the man says go figure ;0)
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    Its a con plain and simple.. all smoke a mirrors and actually means dealerships will not offer many other deals now to their customers

    Basically the gov have asked all dealerships to knock off a grand off a new car, something they would have done anyway to sell them. The gov then take a grand hit aswell, which because they have already put fuel duty up and road tax this MORE THAN COVERS THIS.
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    [cite]Posted By: scruffle[/cite]Its a con plain and simple.. all smoke a mirrors and actually means dealerships will not offer many other deals now to their customers

    Basically the gov have asked all dealerships to knock off a grand off a new car, something they would have done anyway to sell them. The gov then take a grand hit aswell, which because they have already put fuel duty up and road tax this MORE THAN COVERS THIS.

    Must say I'm begining to think along those lines scruffle...though I'm not sure I see it as a con but more of a cock up i.e. not thought through properly....and yes you can negotiate some deals nigh on as good as the cash back offer, so what's the point, especialy when the deal is not offered on all cars in the range...that's plain daft!
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    [cite]Posted By: ShootersHillGuru[/cite]CARGIANT
    2006 Renault Clio 1.2 Extreme 3 dr........12000 miles ...No warrenty.......£5,699 plus, £90 admin fee

    SCRAPPAGE SCHEME
    2009 Renault Clio 1.2 Extreme 3 dr........0 miles ...3 YR Warrenty, 2 year breakdown cover, Taxed.......£6,495


    As the man says go figure ;0)

    But it's a Renault ;o)
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    I personally do not see the point apart from that it will promote a small boost in downsizing ie swapping the family hatchback for a Fiestas and Yarises which actually is a good thing.

    Also as soon as you drive the new car off the forecourt, the car loses its value in VAT straight off anyway.

    As many people have said, the govt will make up for the money its forked out for this scheme by rises in fuel duty and road tax

    I just with there were more incentives to buy more fuel efficient vehicles but there isn't.

    The green alternatives that are currently are small diesels or compact exec hybrids but their price tags certainly are not small and there are issues of the environmental cleanliness in both categories of cars.

    Furthermore cars nowadays are so advanced....... just to install a bloody fog light requires a lap top connection to the cars internal electronic brain and a 3 figure payment to the manufacturer and there are more things to go wrong.

    Yes cars nowadays are much safer and cleaner now than ever before.

    The technology for cleaner cars is there but the cost of that plus changes to the infrastructure to facilitate this (eg steetside plug points and hydrogen storage at petrol stations)remains exorbitantly high.

    I would get out of my car if transport was cheap and widely available either by the govt or the company I work for,

    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    I remember when the Government introduced that Powershift Grant earlier this decade where they provided at least a grand if people bought a duel fuel vehicle ie petrol/electric (hybrid), petrol/liquified petroleum gas or convert their car to LPG (itself a £2k conversion and subject to the usual retrofit safety issues)?.

    Anyone remember that? Did anyone think it was a success? My answer?

    No. But a lot of people bought into it.

    --------------------------------------------------

    PS I ain't a tree hugger.
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    [cite]Posted By: Weegie Addick[/cite]
    [cite]Posted By: Daggs[/cite]I've read up on it a bit because my sons car is becoming expensive to maintain. Unfortunately it's only nine years old (this year) and doesn't qualify.
    The basic principle is: your ten or more year old car goes for scrapping. The Gov. give you £1000 toward a brand new car. The dealer must give you at least £1000 off the car (some are giving more). The Gov. part is not quite as generous as it looks. Because all new cars attract VAT and this is paid to the Gov.
    If we can believe the adverts in Sundays papers, many manufacturers are offering some cracking deals.

    Daggs - heard on the radio this morning that Nissan are extending the offer to cars over eight years old. So if you fancy a Micra ;-)

    Thanks for that Weegie. I researched it this morning. It appears Nissan are taking cars that are only eight years old and giving the £2000 discount, funded by themselves (no Gov. money involved) Also the trade-in may not be scrapped. So it's not quite what it purports to be, but is a way of ridding oneself of an old heap and getting a good discount. Though i understand the argument... 'that discount is probably available without trade-in at all'
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