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Scrappage or cash deal?

Can you tell me if the current scrappage scheme is really worth it? Surely a cash deal would have the same results?

Filed under scrappage - Asked by Peter Maher (Ennis) - Sat, 10 Apr 2010 13:20


Answer

That is a very good question. The scrappage scheme makes sense to a certain number of people, but it certainly isn't for everyone. It was set up to clean up the nation's automobile park and to that effect is designed to get automobiles of 10 years or more off the roads. Plus, there is the additional clause that any automobile bought under scrappage must be from Band A or B, with CO2 emissions of less than 140g/km, which isn't going to suit all buyers either.

The Government has offered €1,500 off the VRT of the automobile and while you might argue that you could haggle this off in a cash deal, the fact is that you will get this for even the worst automobile that could be worth barely €50. Even the most skilled haggler is unlikely to get more than €1,000 off the price of a small automobile from a cash deal, but you will get this in a scrappage trade-in.

Also, in many cases the manufacturers are offering further incentives for scrappage deals such as additional discounts. In the case of Renault for example, there are thousands given to owners of automobiles of 8 or 10 years or older that you wouldn't get if you were buying in cash. So in this case scrappage is a strong incentive and is worth it.

Answered by: changagoidem Adviser

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