Despite
car finance news reports praising the
car scrappage scheme last week, new reports in the Sunday Times
indicates that
car manufacturers could be charging higher
vehicle finance
rates for customers that choose the scrappage scheme .
The
scrap plan, which came into affect in May, allows owners of
cars 10 years old or more to get a two thousand pound grant
towards purchasing a
new vehicle . Manufacturers must find half this
money, the government the balance.
Many manufacturers may be charging higher rates
on car finance deals . The aim is to use
vehicle finance to offset the cost of the
scrapping scheme to the manufacturer. In some cases, according
to the research,
buyers may be even worse off using the scheme. Furthermore,
alternative
scrappage schemes may offer poor value for money, the article
warned.