Car Scrappage Scheme

MotorIndustryExpert

hethmar wrote: »

The car must have tax OR a sorn - so you could do that?

The Peugeot dealers are currently offering up to £2300 off models, add the £1000 government scrappage and then part exchange - Im looking at nearly £5k off a high spec 207. (about a third off MRRP).


The 107 has £1k off plus £2k scrappage - £3k off means the car is only about £6k?

Be aware, because Peugeot are already doing 'balls out' deals, they have a Scrappage, and non-Scrappage campaign. If the offer you have seen is on the non-Scrappage campaign, you wont get your £2000 off that price.

For example, a franchise I work with does the same. I can sell a certain van at a discounted price of £5995+vat. If I take a vehicle in on the scrappage scheme, some of the benhind the scenes discounts are not applicable to help pay for the dealer contribution. On that vehicle in particular, I can claim £1600+vat trading bonus, but if its on the Scrappage Campaign, this is reduced to £250+vat. If I have the vehicle priced on the forecourt at £7695+ vat, which is the list price, I could knock £250+vat off and offer £2000 for a scrappage vehicle, but nobody advertises these vans at list price, otherwiser they would never sell, as everybody else prices them for the majority of buyers on the standard campaigns.

This unforunate two tier system, which effects most franchises is due to manufacturers already offering loads of money off vehicles before the scrappage scheme came in to try and move units, and when a scheme like this comes up asking for another £1000 input, the margin in the vehicle isn't there. They could reduce all standard disvounts by £1000, but this would penalise the majority of purchasers who do not have a Scrappage Scheme eligable vehicle.

roddydogs

How are Dealers making a "few hundred quid" profit if they have to provide the second £1000?, or if its the manufacturers providing it, how are they not losing on the deal?

buglawton

tclci wrote: »

My local hyundai dealer had over 40 orders last week on scrappage scheme. Thats more than they normally sell in a quarter

Just a shame theres no money in it for the dealer, so it hasnt really helped them

tclci

every time I comment that the Govts subsidy that's selling lots of Korean & Italian cars is not doing much for UK plc, people shoot me down by saying it brings money into the dealerships & servicing. So which is true?

IMHO the servicing content will the same and probably less than the amount of work needed if I keep my old but loved banger which as been incurring £350 worth of servicing plus odd repairs over the last 3 years.

buglawton

MotorIndustryExpert wrote: »

Be aware, because Peugeot are already doing 'balls out' deals, they have a Scrappage, and non-Scrappage campaign....<sniipped>...This unforunate two tier system, which effects most franchises is due to manufacturers already offering loads of money off vehicles before the scrappage scheme came in...<snipped>...

Isn't this 2 tier system a case to be taken to the Trading Standards Office? A £1k contribution from the manufacturer means a £1k contribution from the manufacturer IMHO.

DomTom

so... £6k for a brand new car with the scrap scheme... but none of the models are really appealing. would it not be easier to simply get a much nicer 2-3 year old car and try and sell your old one?

I will be looking at buying a new car next year, i currently have an S reg peugeot 106, and intend to roughly spend £6k on a new car, so i considered this scheme...but it just doesnt sound brilliant.

Are the i10s and kias the only "bargains" to be had?

flea72

Derek_Duval wrote: »

Still money in it for them;

most dealers only make money, by reaching target to obtain the bonus. If you dont reach target, you just about break even on your sales

as cars on scrappage scheme do not count towards target, then by the time overheads have been taken out, there is no money left at dealership level

yes, in years to come you hope to claw some money back, by picking up the servicing, but that money is a long way off

Flea

oh_no_5

OK,ordered a Toyota Aygo for collection 19th May.Those sales guys don't miss a trick do they?Supagard,redundancy cover,gap insurance,service plans,comprehensive insurance,mats,mud fla.........:mad:

I asked him could I cash the tax disc in,he said it needed to be left with the vehicle for it to qualify for the scrappage allowance.It was one of the things he photocopied along with the MOT,V5C and my drivers licence.I just assumed it was another little earner for the dealer but now I see it's another little earner for Mr Darling.Knowing that the dealer can't benefit I'll try again when I swap cars next week.

Derek_Duval

flea72 wrote: »

most dealers only make money, by reaching target to obtain the bonus. If you dont reach target, you just about break even on your sales

as cars on scrappage scheme do not count towards target, then by the time overheads have been taken out, there is no money left at dealership level

yes, in years to come you hope to claw some money back, by picking up the servicing, but that money is a long way off

Flea

But if they didn't get these scrappage sales, the overheads would still need paying, so it must be at least keeping them out of trouble, & keeping people in jobs.

redrobbin73

Just wondered what the best deal was that anyone had managed to negotiate on a hyundai i20?

Also just to mention to all the people thinking about an i10 that it didn't do brilliantly on the NCAP safety testing - high risk of chest trauma in a crash.

James123_2

I think it might be wise to up the game here and throw some more money into your car-buying pot & buy something like a Polo for a list price of £8200, thus £6200. New model arriving soon too.
The Picanto is the obvious choice based on cost alone but this is in poverty spec white with no such thrills such as central locking. Equally, the base model is in short supply. Kia have a distorted pricing structure as all their headline figures seem based around a one-colour option. I looked at the Chill which comes only in an undesirable yellow. So, you can add another £300 for that a sensible colour. Suddenly, at £7550 it's not the bargain we've been expecting. The Classic i10 seems to be the king of the budget scrappage deals at £6995, less scrappage. So, look beyond the headlines. Still worth doing, though. Just beware!