Another scrappage question

terryya

I've always thought the scrappage thing was a bit of a con and you'd be better off buying a couple of years old car and selling your old banger. However I was thinking about it today and started wondering.

If you but one of the cheapest cars such as i10 or Panda at just under 5k will you be much worse off over 3 years than if you'd kept your 10 year old car?

I might be missing something here (and I'm sure someone will let me know if I am) and I'm making it up as I go along,but this is my thinking.

New Car
Cost 5k and worth about 3k - Loss of about 2k Depreciation = £667pa
Service £100pa
Repairs £0
Road tax - £35
Petrol - £400
Loss of interest at 3% = £150
Total = £1352 per year so £4056 over three years

Old Car
(based on my recent history)
MOT/Service of around £400pa
Tax £125
Depreciation £100?
Petrol - £500
Total - £1125 so £3375 over three years.

So on my very rough figures only about £200 a year worse off getting the new car and you get the pleasure of driving a new car and the security that it shouldn't let you down and if it does you shouldn't have to fork out.

Am I missing something?

aqueoushumour01

it's a difficult one - i think perhaps depreciation will be higher on scrappage deals as people will be able to offer more competitive prices when they come to sell due to having paid less for their cars in the first place but then again an older car could have issues a newer car wouldn't - and may end up expense to fix

terryya

I'd wondered about the depreciation, but thought that in three years the scheme will have finished and people will be more concerned about the cost to swap rather than what they paid.

movingforward2010

i dont think i would be able to drive a i10 or Panda on a daily basis, apart from the embarrassment, the lack of refinement and power would be to much to handle.

go used and get something better for your £££

terryya

Unfortunately my car (just) doesn't qualify so I don't have an option. However it is a second car that will prob only do about5-6000miles pa so refinement and power aren't that important.