Car scrappage scheme backfires

To ease the pressure on the British car industry the government have introduced the car scrappage scheme – sell your used car, get some cash, buy a new one. Sounds too good to be true, especially if you find a wise buy you could actually upgrade your current motor and have some spare cash to fill the tank up.

Well, sadly it does look too good to be true because fresh research has discovered that the scrappage scheme has inversely affected the price of buying cars. Since the scheme was introduced 12 months ago retail prices have increased by an average of 9%. The biggest price hike was for buyers of a new Fiesta 1.25 60 Studio which saw it rise by 32.6%.

So depending on how good you are at haggling for the old wreck, bare in mind the new motor will be costing you a little bit more than it would've a year ago.

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