It sounded like a great incentive when it was launched back in May, and so many people have taken advantage of the cash for bangers scheme that experts predict the budget will run out by the end of August. So does that mean we should rush out and buy a new car before it's too late or is the scheme not really worthwhile after all?
The first thing to remember is that a new car starts to depreciate the second you drive it out of the dealership. In the first year, a new car can depreciate around £500 a month. Make sure you check your chosen car's rate of depreciation with a used car guide such as theaa.com, glass.co.uk or parkers.co.uk. Next, bear in mind that a new car will have higher insurance premiums than your current old banger. And you might have to pay a fee for cancelling your old insurance or swapping to a different model.
The scheme is only available to people who have owned a car over 10 years old for more than 12 months, and that also has an MOT. When you take it to the dealership and choose your new car, the dealer will take £1000 off the price and the government fund will cover the next £1000. It's up to you to haggle with the dealer to bring the price even lower. However, with the car industry in its current state, you probably have a good chance of knocking more off the price as dealers are keen to get cars off their forecourts.
So if you were considering buying a new car anyway and would like to take advantage of the £2000 incentive, the fund of £300 million hasn't run out yet, so check out your local dealer now. Will you be swapping your old banger for cash or do you think the scheme is clapped out? Leave a comment and share your thoughts.
Saturday, June 27, 2009
You think I’d learn
I really have to stop complaining when things are routine and boring. I should know by now that it doesn’t lead to good things.
So, yeah, I’m completely fucked at the moment… Well, maybe not quite completely, but well and thoroughly. See, a couple of month ago, I had to refinance the final “balloon” payment on my car, which I did through Volkswagen credit, the same people I’ve been dealing with since I bought the car. So, I thought everything was taken care of…. that is, until I got a letter in the mail saying they hadn’t received some paperwork from me (they never sent me any) and I had ten days from the receipt of the letter to fix the situation…. So, on my next day off (about two days later) , I called to see what the problem was, only to find out they had already canceled my financing! Not only that, since I was past the due date now, they couldn’t finance me, so I had to come up with the full amount I owed or turn the car in.
Soooo, of course I scrambled to find a loan only to discover that a bill hadn’t been paid back when I hurt my knee at work, and was now in collection, which was blocking me from getting any loans approved…… Joy and rapture….. I contact the benefits department at work to get THAT straightened out and….
…. Fast forward to two weeks ago. It’s my father’s 70th birthday. I went out to a nice dinner with him and Kendra. came home, happy in a good mood….. and my car wasn’t in the driveway. It had been repossessed. Which, by the way, the don’t tell you or anything. I had to call the police to report the car stolen to find that out. The notice I got from VW credit, three days later, informed me that I have until the 26th to come up with the money I owe or they sell the car and if they sell the car for less than I owe, I’m still on the hook for the rest of it. Meaning that they could sell my car for a dollar and I’ll still owe them over twelve thousand dollars. Joy. To add to the fun, I now have a repossession on my credit report, so how much luck to you think I’ve had coming up with the money?
I’m going to run away to Alaska and become a hermit.
So, yeah, I’m completely fucked at the moment… Well, maybe not quite completely, but well and thoroughly. See, a couple of month ago, I had to refinance the final “balloon” payment on my car, which I did through Volkswagen credit, the same people I’ve been dealing with since I bought the car. So, I thought everything was taken care of…. that is, until I got a letter in the mail saying they hadn’t received some paperwork from me (they never sent me any) and I had ten days from the receipt of the letter to fix the situation…. So, on my next day off (about two days later) , I called to see what the problem was, only to find out they had already canceled my financing! Not only that, since I was past the due date now, they couldn’t finance me, so I had to come up with the full amount I owed or turn the car in.
Soooo, of course I scrambled to find a loan only to discover that a bill hadn’t been paid back when I hurt my knee at work, and was now in collection, which was blocking me from getting any loans approved…… Joy and rapture….. I contact the benefits department at work to get THAT straightened out and….
…. Fast forward to two weeks ago. It’s my father’s 70th birthday. I went out to a nice dinner with him and Kendra. came home, happy in a good mood….. and my car wasn’t in the driveway. It had been repossessed. Which, by the way, the don’t tell you or anything. I had to call the police to report the car stolen to find that out. The notice I got from VW credit, three days later, informed me that I have until the 26th to come up with the money I owe or they sell the car and if they sell the car for less than I owe, I’m still on the hook for the rest of it. Meaning that they could sell my car for a dollar and I’ll still owe them over twelve thousand dollars. Joy. To add to the fun, I now have a repossession on my credit report, so how much luck to you think I’ve had coming up with the money?
I’m going to run away to Alaska and become a hermit.
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