Breakdown Cover Articles

Scrappage Scheme

One way to ensure you get the best deal from a provider of car breakdown cover UK, is to have the most up-to-date car possible and that’s why for many, the Scrappage scheme seemed such a good idea.

Th idea is simple. There are too many old cars on the roads today. Old cars can be more dangerous and are mostly less efficient than modern cars. They use more fuel, don’t return the best mileage figures and require more servicing, and maintaining. And often, they attract higher car insurance breakdown cover premiums.

In short, it is best for drivers across Europe to drive the most modern and efficient cars possible. Very laudable and the UK has now followed the likes of Germany in offering a viable scrappage scheme. And the likes of the AA, RAC and Green Flag seem generally in favour.

Despite some hiccups at the start, when certain manufacturers threatened not to participate because of VAT worries, the scheme has got off to a good start, with an estimated 60,000 old cars being taken off the UK roads.

But of course, everyone is not happy. Certain commentators think that the scrappage scheme is a hyped-up initiative which is not as good as it first appears. Some have gone as far as calling it ill-considered and lacking in effectiveness.

First, the scheme itself. The car has to be old (over ten years), be taxed, insured and MOT. In other words, fishing out that old banger from the village pond is not going to work either. Nor can you buy your mates old banger and exchange that. You have to have owned the car for a good 12 months.

So, given that you pass all the criteria (and that must rule out a good load of people) you can run along to the Government and get a £2,000 pay-out. And with that wedge in your hand, you can go along to the dealer and get a further £2,000 discount, because, afterall, times are tough.

So, you’d be looked at getting say a £12,000 motor for around £8,000. Not bad. The trouble is, that when you read the fine print (and fine print it is, get your glasses ready), you will see that the Government only gives you £1,000 of the £2,000 on offer, and the car manufacturer is meant to give you the other £1,000 off the list price. Now anyone knows that in tough times, manufacturers will haggle more than a carpet salesmen, so a £1,000 off the ticket price is not that big a deal. Motoring magazines have been highlighting regular deals which have seen up to £5,000 knocked off some new cars. So £1,000 is a little paltry.

Furthermore, people might swap their ten-year-old car for a £1,000 handout, realising that it might be worth far more. Indeed, it might be worth many thousands more.

Old does not necessarily mean worthless and commentators are worried that people are so brainwashed by the Government’s apparent largesse, that they fail to understand that they can easily get bigger dealer discounts and that they might be selling their own car too cheaply.

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