Due to the Government Scrappage Scheme some cars now work out cheaper to buy new than a twelve month old model. Popular models such as the Fiat 500, Hyundai i10 and the Volkswagen Golf can all be bought new under the scrappage scheme for less than a used version up to a year old. A new Volkswagen Golf 1.6 TDI new on scrappage would cost £12,430 where as a 09/59 plate with 200 miles would be £16,200 a saving of £3770 if you buy the new model. A Fiat 500 1.2 Pop (08 plate more than 23,000 miles) will cost from £6995 while the same car new should cost £295 less with a scrappage discount.
There is a shortage of used cars and the rise in used car values now make it cheaper to trade in for a brand new model. New car buyers will now lose less money in depreciation if they are able to advantage of the scrappage scheme. Buyers unable to use the scrappage scheme face paying over the odds for a used car or paying the list price for a new model.
The UK Scrappage Incentive Scheme will be boosted by a further £100 million and it was announced that cars eligible for the scheme can now be six months younger than before, with the age qualification changed to include cars registered on or before 29 Feb 2000 (V registration). The scheme will come to an end in February 2010 or when the funding runs out, which ever is sooner.