Can you get dealer discounts on top of the car scrappage allowance?

1
Found 13th Feb 2010
A bit late, but our 11 year-old Escort is now hinting at early retirement.

As I understand it, the government provides £1k scrappage allowance, if the manufacturer matches this. Yet it is the dealer who has to actually sign up to the scheme - I don't really understand this, but moving on.

So the dealer margin is not affected by the scheme, other than by the cost of storing and disposing of the scrapped vehicle. (And I guess the maufacturer may reduce the dealer margin, though I haven't heard any clamour from dealers about this)

So it should be possible to negotiate a dealer discount on top of the scrappage allowance, especially if the dealer is struggling to meet monthly/quarterly sales quotas. But the advertising suggests that there is no chance of additional discount, other than those few companies that advertise such as £2.4k scrappage allowance.

Anyone had any luck? Which manufacturer/models?

If the norm is not to get any additional discount then something is wrong here. A £1k manufacturer discount is peanuts, especially when the retail prices seem to have been inflated since the scrappage scheme was introduced. Our car retailed at £11k 11 years ago, but we bought it for £8k (helped by the fact that the dealer had a quarterly target to meet).

The offers quoted on HUKD for Peter Vardy, who appear not to subscribe to the scrappage scheme, suggest that the scheme is not what it seems. In fact, one might assume that the sooner the scheme ends the better, since it will then be possible to negotiate decent discounts with the dealer, and the retail prices might fall to pre-scrappage levels.

Am I talking rubbish? Comments welcomed.

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1 Comment

The whole scrappage thing is rubbish. For every new car you get 1k from the government, for every new car £1056 has to be paid to register it to the government - hence £56 profit.

Most dealers if you haggle ard enough will give you £1000-£1500 easy of the showroom price. So if you can get atleast £500 for your old car (I got £400 for an N reg fiesta with a leaky sunroof!) flog it and buy new.

Or even better to buy one a year old and save all the VAT etc maybe saving 3k plus!

Just food for thought
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