Car scrappage not all rosy

Mon, 08 Jun 2009



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.
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