Car firms have used the 'cash for bangers' scheme as a smoke screen to hike prices by up to a third.
Discounts offered for trading-in older cars have been more than wiped out by artificial increases in the list price of many new vehicles.
The evidence suggests that the scheme, designed to boost British manufacturing and protect jobs, actually fed the coffers of foreign-owned car producers.
Researchers say that retail prices have risen by an average 9 per cent in 12 months, and some firms have gone much further.
U.S.-owned Ford hit buyers of its Fiesta 1.25 60 Studio with a 'staggering hike' of 32.6 per cent - up by ?2,414 to ?11,536. The same firm has two other models in a league table of the five biggest price rises.
Ford put through four separate rises last year and was named as the motor manufacturer with the biggest average increase across its range - 14.7 per cent.
The increases have in many cases wiped out the ?2,000 discount given to buyers trading in ten-year-old vehicles under the terms of the ?400million scrappage scheme set up by Business Secretary Lord Mandelson.
The investigation by What Car? magazine comes as the first '10 plate' models hit the road. Ford claimed that price rises were essential to offset the effect of the weak pound which make foreign-made goods more expensive to import.
But What Car? deputy editor Peter Lawton said manufacturers were hiding price increases in scrappage scheme deals.
'Some of the price rises take your breath away,' he added. 'We have some sympathy for car manufacturers but this is opportunist so we shouldn't feel too sorry for them.'
Discounts offered for trading-in older cars have been more than wiped out by artificial increases in the list price of many new vehicles.
The evidence suggests that the scheme, designed to boost British manufacturing and protect jobs, actually fed the coffers of foreign-owned car producers.
Claims: The car scrappage scheme appears to have fed the coffers of foreign-owned car producers
Researchers say that retail prices have risen by an average 9 per cent in 12 months, and some firms have gone much further.
U.S.-owned Ford hit buyers of its Fiesta 1.25 60 Studio with a 'staggering hike' of 32.6 per cent - up by ?2,414 to ?11,536. The same firm has two other models in a league table of the five biggest price rises.
Ford put through four separate rises last year and was named as the motor manufacturer with the biggest average increase across its range - 14.7 per cent.
The increases have in many cases wiped out the ?2,000 discount given to buyers trading in ten-year-old vehicles under the terms of the ?400million scrappage scheme set up by Business Secretary Lord Mandelson.
The investigation by What Car? magazine comes as the first '10 plate' models hit the road. Ford claimed that price rises were essential to offset the effect of the weak pound which make foreign-made goods more expensive to import.
But What Car? deputy editor Peter Lawton said manufacturers were hiding price increases in scrappage scheme deals.
'Some of the price rises take your breath away,' he added. 'We have some sympathy for car manufacturers but this is opportunist so we shouldn't feel too sorry for them.'
Comment