gmb45
31st July, 2009, 05:21 AM
Rising prices mean some people are no better off under the 'cash for bangers' scheme than they were before.
Motorists should shop around to get the best deal says Which? Car
The Government inititative allows owners to get ?2,000 off a new vehicle if they trade in one over 10 years old.
But some car manufacturers have raised the prices by as much as 14% recently, cancelling out the benefit, according to Which? Car magazine.
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.
"But with new car prices being hiked up, the scheme can be a false economy.
"Do your homework, as a pre-registered or one-year-old car may offer an even better deal."
A Ford Fiesta 1.25 Zetec has gone up from ?11,570 in October 2008 to ?13,195 this month.
The magazine also cited the price of a Vauxhall Insignia 1.8i SE which has risen from ?17,981 in January to stand at ?20,430.
Another popular model, the Nissan Micra 1.4, has gone up by 11%.
The magazine conceded that 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 has gone up just ?35 since September 2008, while Volvo has actually reduced prices on some cars.
Motorists should shop around to get the best deal says Which? Car
The Government inititative allows owners to get ?2,000 off a new vehicle if they trade in one over 10 years old.
But some car manufacturers have raised the prices by as much as 14% recently, cancelling out the benefit, according to Which? Car magazine.
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.
"But with new car prices being hiked up, the scheme can be a false economy.
"Do your homework, as a pre-registered or one-year-old car may offer an even better deal."
A Ford Fiesta 1.25 Zetec has gone up from ?11,570 in October 2008 to ?13,195 this month.
The magazine also cited the price of a Vauxhall Insignia 1.8i SE which has risen from ?17,981 in January to stand at ?20,430.
Another popular model, the Nissan Micra 1.4, has gone up by 11%.
The magazine conceded that 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 has gone up just ?35 since September 2008, while Volvo has actually reduced prices on some cars.