Scrappage to Swappage: everything you need to know
The Govt's scrappage scheme ended in March, writes Leana Kell of motors.co.uk. And during the ten months that the scheme ran for buyers have had a unique opportunity to trade in their old cars and drive away in a new one. Almost 400,000 motorists took advantage of the scheme, adding up to one in five new car registrations in the UK.
The scheme offered customers who owned a vehicle more than ten years old, a £2000 incentive to ‘scrap’ their motor in exchange for a brand new model. The Scrappage Scheme was designed to give the car industry a boost in a time of economic downfall, and with a competitive range of finance deals also available, motorists were given a once in a lifetime opportunity to grab a great deal.
SMMT chief executive Paul Everitt said, “The Scrappage Incentive Scheme has given a much needed stimulus to the UK motor industry boosting sales and production volumes, protecting thousands of jobs in retail and manufacturing.”
The scrappage scheme closed on 31st March 2010, but the industry is determined to keep the flow of buyers coming in, which is why many manufacturers have come up with a slew of new offers with which to tempt buyers. The new schemes available are often referred to as ‘Swappage’ because they offer discounts on new cars in exchange for older vehicles, as opposed to scrapping them. Here's the motors.co.uk low-down on the savings available:
Vauxhall’s Swappage scheme is currently one of the most competitive in the market, offering an extra £1000 discount over the scrappage scheme to car owners with vehicles that are more than seven years old. So, you can purchase a £3000 discount off a new three-door or five-door Astra and most new Corsa models. To qualify for the scheme, the trade-in car must have tax, insurance and a valid MOT but there is no upper age limit for cars.
Toyota is offering a 'swap value' of at least £2000 if your current vehicle is 7-10 years old. This includes models registered on W, X, Y, 51, 02, and 52 plates. Possible purchases include the Yaris, Auris and Avensis.
Hyundai is offering a ‘trade and upgrade’ scheme, which offers motorists a minimum £1500 part exchange allowance for a 7-10 years old vehicle.
Nissan’s offer is set to reward people who buy its British-made models – they’ll give you £2000 off any British built Nissans when you trade in a car that is 8 years or older. This offer is therefore available on a Nissan Micra, Note, Qashqai and Qashqai +2.
Chevrolet is offering an extended 5 year warranty and 3 years free servicing on Aveo and Cruze models until 30th June 2010.“We want to show our customers that even now the Scrappage Scheme has ended, Chevrolet cars still offer enormous value for money," said Chevrolet UK managing director, Mark Terry.
Kia’s scheme is called the ‘7 Year Switch’ and discounts £2000 from the price of a Soul, Pro cee’d, Cee’d SW and Cee’d, and £1,500 off the Picanto, Rio and Venga. Open to cars between 7-10 years old, the 7 Year Switch is offered to any drivers who have owned their car for more than 6 months and have a valid MOT. Kia is also offering their standard 7 year or 100,000 miles warranty with all models bought under the scheme.
With all the offers currently available, it’s worth noting that some of the schemes restrict the choice of model available to you so always check if there is an upper age limit for cars eligible on the schemes. The prices of cars have also increased, for example, Ford has had four price rises in the past eighteen months alone. That’s why it’s so important to always keep your wits about you when entering into a deal, and be fully prepared to negotiate for incentives such as further cash discounts, competitive finance deals and free added extras.
Don’t sell out
The Scrappage Scheme has been responsible for a shortage in older, cheaper cars which has led to an increase in their prices. So, before you consider any of the new schemes, make sure a private deal will not leave you better off. And if you do sell your car privately and want to purchase a new one from a dealer, make sure you ask for a discount.
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