Car Scrappage - Should I buy it?

DrDeal

It looks increasingly like the govt. will announce a £2grand payout for bangers later this week. As an owner of a qualifying vehicle I've been extremely tempted, although buying a brand new car goes against every fibre of my being. Does the following scenario look realistic, and do you moneysavingexperts recommend this plan or have better advice for folks in my situation? Your insight much appreciated.

• I would trade in my banger against a new base model Toyota Aygo - around £6800 otr, on which is applied the £2000 rebate. So for change from £5000 I get a new car for the same price as a 2005 model. I would anticipate keeping this car until the wheels fall off - yearly savings would be about £300 compared to my existing run-around (fuel + tax).

My banger won't survive the MOT later this year so it's value is really £0, and a new vehicle will be required in any case. Am I better off to pull the trigger here, or spend less on another second hand banger in the hopes that I don't buy a lemon?

MX5huggy

There is no point thinking about this till Wendnesday afternoon, i thinking it is more unlikley as talk of it has died down in the media, but it might be the rabbit from the hat.

I am in a similar position although my car has failed it's mot (but the old one runs till may 7th.)

DrDeal

You're right of course, it could be a complete media decoy. If it does come to pass, I expect people will have to act quickly to 'get their share'.

From what I read on Yahoo, an MOT wouldn't be required just proof of road tax and ownership. In any event I guess we'll have to wait for the T&C's before getting too excited!

Snowdrop22_2

I think they were talking about the scheme allowing you to buy a car up to one year old.
I tihnk this would be the best option and would make the sums work even more for you.
It does make sense to buy a lower value car because then you are getting a higher percentage off (ie you always get the £2000 off)
I would immagine that you could get someone to come and pick up your vehicle and take it to the scrap yard - then you will not need to get an MOT for it.
I think the other posters are right though - lets wait till Wednesday to see!

Hintza

The first thing that any manufacturer will do is withdraw all offers on new cars. In many instaqnces they are worth more than £2k. So don't expect any great bargains if this comes to pass.

DrDeal

Good idea on the 1 year old bit - that would definitely sweeten the deal! Thx