Price-rise row raises banger bonus doubt
Rising vehicle prices have meant some consumers are no better off from the Government's "cash for bangers" car-scrappage scheme, according to Which? Car magazine. Rising vehicle prices have meant some consumers are no better off from the Government's "cash for bangers" car-scrappage scheme, according to Which? Car magazine. Introduced in May, the initiative allows owners of cars more than 10 years old to get £2,000 off a new vehicle when they trade in their old one. But some manufacturers have raised the list price of cars by up to 14 per cent in recent months, Which? Car said. However, the survey has been rebuffed by one car dealer in Shropshire who said it presented an inaccurate picture. Murray Jones, of Greenhous, Shrewsbury, said the scrappage scheme had been good news for dealers and customers alike. He said price rises had been caused by a falling pound and rising Euro not by dealers looking to cash-in on scrappage. Read more in the Shropshire Star
Rising vehicle prices have meant some consumers are no better off from the Government's "cash for bangers" car-scrappage scheme, according to Which? Car magazine.
Introduced in May, the initiative allows owners of cars more than 10 years old to get £2,000 off a new vehicle when they trade in their old one. But some manufacturers have raised the list price of cars by up to 14 per cent in recent months, Which? Car said.
However, the survey has been rebuffed by one car dealer in Shropshire who said it presented an inaccurate picture.
Murray Jones, of Greenhous, Shrewsbury, said the scrappage scheme had been good news for dealers and customers alike. He said price rises had been caused by a falling pound and rising Euro not by dealers looking to cash-in on scrappage.
Mr Jones said: "It's had a good effect. The customers who are making the most of it are mainly elderly, who had savings in the bank that aren't getting any interest.
"There have been price increases, but not by that much. Most rises are caused by the currency fluctuations."
Which? mentioned the list price of a Ford Fiesta 1.25 Zetec, which has gone up from £11,570 in October 2008 to £13,195 in July 2009.
The magazine also cited the price of a Vauxhall Insignia 1.8i SE, which rose from £17,981 in January 2009 to £20,430 in July 2009.
These two rises were both 14 per cent and Which? Car said another popular model, the Nissan Micra 1.4, had gone up 11 per cent - from £11,200 in September 2008 to £12,395 in July 2009.
The magazine conceded global economic conditions had forced a rethink of car prices. But it added that some manufacturers had managed to keep price increases to a minimum.
A Hyundai 130, for example, had gone up just £35 - or 0.3 per cent - since September 2008 while Volvo had actually reduced prices on some models.
Which? Car editor Richard Headland said: "Most buyers are being attracted by the £2,000 discount on a new car, and the scrappage scheme can offer some good deals. Do your homework, as a pre-registered or one-year-old car may offer an even better deal."
By Andy Richardson
