what is a better deal- scrappage £2000 and brand new car, or just get a used car?

(11 Posts)
owainsmum Tue 13-Aug-13 10:41:30

We're thinking of replacing our car, it's a W reg, so pretty old and not worth anything (maybe £500 if we're lucky). A dealer near us is doing the scrappage scheme that the Government did a while ago, so we could buy a brand new car and get £2000 scrappage for our old car. Apart from the fact that we still can't really afford a brand new car even with £2000 off, is it worth it when you take into account that as soon as a brand new car is out of the forecourt it's value drops? Would we be better off getting a car that is a few years old and would hold its value better? Not that we're too concerned about the value holding, because we would probably keep the car for year anyway, like we have with our current car (had it for 9 years!).
So, what would you do in this situation- new car or used?

Personally, I don't think new cars are ever worth it, but I see the temptation with £2k off. But realistically I reckon most used cars (even only a year or so old) will be more than £2k less than the price of the same car new. So I'd go used.

LIZS Tue 13-Aug-13 10:54:02

Given the time of year I'd bet "Scrappage" is limited to those preregistered models they have on the forecourt or at the factory/importer.

owainsmum Tue 13-Aug-13 10:59:40

the offer is only valid until the 25th september, so yes it probably is to get rid of current stock, although I think it has been running for about 6 months or so.

WMittens Tue 13-Aug-13 11:05:32

Apart from the fact that we still can't really afford a brand new car even with £2000 off

There's your answer.

You don't say what your W reg car is - a W reg TVR Griffith would be worth maybe £30,000.

As there is no Governmental scrappage scheme any more, it's really just an advert for a guaranteed £2000 part ex - if you go to another dealer they may well do a similar deal, it all depends on how much they want your money.

I'd suggest looking for something 2-5 years old - depreciation gone, loads of life left in it.

It's a no brainer.

Of course you can't get a new car, you can't afford one.

Scrap the old car and buy another second hand one. You can get perfectly good cars for under a grand. I have a wonderfully reliable old volve that I bought for £400. I got £500 for scrapping my old car once it was no longer fixable.

Seriously, why would you even consider buying a new car when you can't afford it? <shakes head>

We have bought new for the last couple of cars, but that's because they come with other benefits, such as warranty, breakdown cover, etc.

If newness doesn't bother you, I'd look for a low mileage used model, maybe one or two years old.

Oblomov Tue 13-Aug-13 11:22:40

A car that is 1 or 2 years old sells for £10,000's , surely?
You can't get a car that is a yera old for less that £6k-£17k, surely?

What is your budget Op. How much can you afford. Should be your starting point.

owainsmum Tue 13-Aug-13 11:25:06

When I say we can't afford a new car, we could do it if we wanted to, but obviously if we spent less money that would be better. Our current car is a Seat Leon, 13 years old, over 100,000 miles on the clock, bits falling off it, will probably fail its MOT in 6 months time. I was originally thinking about getting something that is maybe 2-3 years old, but then saw this offer and wondered whether it's a good deal or not. I think I'll stick to the original plan, I'm not bothered about having a brand new car, I have always thought they are bad value for money.
Thanks everyone for the advice smile

WMittens Tue 13-Aug-13 14:02:51

A car that is 1 or 2 years old sells for £10,000's , surely?
You can't get a car that is a yera old for less that £6k-£17k, surely?

It depends on the car - you can get a new car for under £6k. The simple fact is, if a car is too close to its new price, why would anyone bother going secondhand? There has to be enough price differential to make it worth it, so the value drops straight away. Why bother spending e.g. £11,000 on a car with 300 miles on it and 3 months less warranty, if you could spend £11,500 and get it with 0 miles (and the exact options you want)?

A quick look on Autotrader shows a year old Corsa at £9499 (from a dealer); a similar spec new on Vauxhall's configurator is £15,450. That secondhand one would have been maybe £8k-£8.5k as a part ex.

WMittens Tue 13-Aug-13 14:04:54

We have bought new for the last couple of cars, but that's because they come with other benefits, such as warranty, breakdown cover, etc.

You can get both warranty and breakdown cover (and GAP and whatever other add on you require) on secondhand cars.

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