New cars cheaper than old bangers

Back

Research shows that motorists can save more money when buying some new cars than purchasing used models when using the Government’s extended scrappage scheme.

Although new car prices have already risen by almost 9.5 per cent, used car prices are some 30 per cent higher than they were a year ago, according to a price comparison study by What Car? magazine.

Buyers with a roadworthy, ten-year-old car owned for one year who can take advantage of the 2,000 pounds trade-in incentive can buy certain new models within ranges such as the Volkswagen Golf, Fiat 500 or Hyundai i10 for less than the price of a one-year-old example.

What Car? editor Steve Fowler, who thinks that the market this year is bizarre, said: “It’s long been the case that nearly new cars represent excellent value when compared to new, but not right now. Whether you’re a scrappage buyer or not, it’s worth doing the maths to see if it’s more cost-effective to buy new.”

Launched in May this year, the “cash for bangers” scheme is said to have given a much needed boost to new car sales in the UK.

The Government recently injected a further 100 million pounds, giving 100,000 more drivers the opportunity to have their old vehicle crushed for an incentive of 1000 pounds from the Treasury matched by a 1000 pounds discount from the manufacturer.

Get a car insurance or home insurance quote now.