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Skoda Scrappage Scheme: Worse out of the lot?

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I've been waiting for Skoda to announce their scrappage scheme offers and am very disappointed from what they offered :(

I was planning on getting a LE with the scheme, but it works out hell of a lot more expensive after 3 years than if I take their VAT off offer :eek:

BMW, Volvo and Honda (just to name a few) are offering their existing deals with the scrappage offer (e.g. like 0% interest).. oh well I guess I'll have to put off getting a new car

Is the VAT-free offer still available on 2010MY factory orders or only on in-stock pre-facelifts? I've been contemplating the scrappage scheme too, but the zero VAT would probably net me a slightly bigger discount.

The whole thing is a big con if it's only £2k off list. This could have been achieved BEFORE the scheme was announced and you could have sold your old car for £500 or so in many cases. I posted a similar question to a thread of Allams and got no response at all.

The government should have worked it that you submitted your car to a registered scrap yard, the car was crushed and you were given a £2k voucher either to use against a negotiated price for a new car or redeemed if the car was already purchase on production of a valid receipt/invoice.

THE 2K SHOULD BE OFF THE PREVIOUSLY DISCOUNTED PRICE NOT LIST PRICE AS FAR AS I'M CONCERNED!!!

Edited by loskie

  • Author

Thats exactly what I thought as well, It should be on the discount that they are already have and not on the list price

The Government are only giving £1000 - the other £1500 is coming from Skoda and the dealer so the Government could give you a voucher for the full amount.

As the Government will earn more money from the VAT earned on the the sales than the £1000 they are giving away - they are the ones who are being tight!!

Thats exactly what I thought as well, It should be on the discount that they are already have and not on the list price

Totally agree.........I was one of those people who ordered my car before the budget on a "VAT free scheme (so called). Since the new vehicle arrived after the budget thought it would be possible to get some more off the price as my PX ticked all the boxes for the scrapage scheme............Ha.. not so...... Am in correspondace with the manufactures about this............lets see what happens...TBH didnt want anymore from them just the £1000 from the goverment..........BUT totally agree the scrappage deal seems to be a waste of time. :mad:.....but a BIG :thumbup: on the new car.

Thats exactly what I thought as well, It should be on the discount that they are already have and not on the list price

Can someone please clarify this......

What would happen if I want to buy a new car from a Skoda dealer and haggle with them in the normal manner for some kind of discount. We agree a discounted price and then before I sign the paperwork I tell them I want to make use of the scrappage scheme also. Surely in this case, the dealer discount and the scrappage discount would both apply?

The only disclaimers I can see on Skoda's website is that the scrappage scheme does not apply in addition to existing manufacturer's promotions e.g. free 3 year servicing, 0% interest etc.

Cheers,

Bill.

I did wonder exactly that. Do the deal stating that you had no trade in, negotiate the best price you can then at the last minute drop in the fact you want to make use of the scrappage scheme.

I'd happily do that and accept the Government's £1000 off the list price.

It's like a big game of poker.

I think it's pretty poor that Skoda aren't offering any of their existing deals such as free servicing or 0% interest with the scrappage offer since some of the other manufacturers deals are very good at the moment.

Skoda are currently advertising a minimum of £2,500 off under Skoda Scrappage Scheme and I think we need to remember that there is usually still some room for further discount off any advertised price.

As per the T&C's of the scheme for ALL manufactures, the scrappage discount is applied to LIST price. its for this reason that the scheme is a waste of time. Its a big carrot thats designed to make you THINK you are getting a good deal, when in reality you could negotiate a bigger discount before the scheme was introduced.

Skoda also increased their prices across the range just before the scheme was announced, along with most manufacturers, thus the scrappage discount is worthless.

Any dealer offering more is taking a big hit, and maybe selling cars at a loss just to shift them and justify the scheme.

  • Author

Well it was my first time trying to buy a new car, so I am very naive when it comes to haggling with the dealers, but when I spoke to a dealer about getting the VRS LE they were not at all interested in budging from the VAT discount, not even a quid!

I think what someone mentioned here about negotiating with the dealer first and then bringing out the scrappage ace might work!

The key point as I understand it is that it is the manufacturer, not the dealer, who provides the top up over the government's initial £1000. This does not affect dealer margins.

I think the tactic to use in negotiating a discount is to agre an appropriate price using the dealer's margin, then introduce the scrappage idea.

The scheme is being launched on Monday so we will soon see if there are good deals to be had. I have searched online for the T & C of the scheme and not found anything stating the scrappage discount must be applied to list price.

I've been looking to find out answers to the points above and from what I can see =

- £2500 is off the list price as manufacturers are only allowed to quote that

- Skoda are putting in a £1000 and the dealers are putting in an extra £500 so don't have big margins in the cars

- Skoda have put prices up by between 1-2% on April 1st but that's the first rise for over a year?? Ford have done 3 rises since January so have gone up about 10% !!!

- if you state that you have no p/x and sign a deal, then you can't suddenly add scrappage as you have broken the terms so original deal isn't binding. If you haven't signed when you tell them about scrappage then they simply won't do the deal as they would be losing money!!

  • Administrators

Just heard the first ad for happy scrapper.

It was on rock radio (Manchesters first classic rock radio) An odd choice :)

Good advert, stated the obvious that we all know, 2.5k off list etc.

Carrot or not it might get people into newer cars. I know I'm half tempted. If you have the qualifiying car I'd leave it out until you got the best price, then see what else can be done. At the absolute least you should get goverment cash + manf cash...push push and push, remember you can walk away and talk to ANY dealer in the country.

Your partx over 10years is worth the same 2.5k regardless, unless it's a 1960's e type, in which case I'd think twice. Cal lthem and ask, each dealer has different targets and has archived different levels of sales. You might strike it lucky and find the dealer who only needs to sell one more car to meet his target.... It's good to talk ;)

  • Author

If they offered lower interest rates with the scheme, then I would definitely go with it, Skoda's offering 10.6% APR!!!!

What the goverment should have done is have no involvement with the manufactures at all and just given every car owner interested in a new car the chance to get a £1k cheque back once they completed the purchase and then the Skoda would have kept the VAT free offers and then you would have got a further £1,000 off.

Also just so everyone is clear on it the £1,500 extra to make up the £2,500 doesn't come from Skoda it comes from Skoda AND the dealer we have to pay towards it. The Fabia-1 1.2 60bhp actually earns us £102.97 and we've still got to pay PDi and valet so don't expect to get your usual dealer margin discount on these scrappage deals.

I'd have much preferred it if we had the VAT offer to play with and then a voucher from the government.

  • Author

Yes, I understand that now, but as I said its the finance APR rate I have a problem with, if Skoda offered the scheme with the VAT offer combined with the scrappage i.e. VAT off + £1000 from the government + low interest then it would work out better for Skoda (since Skoda can get back the money from the government, with the VAT off they don't get anything) and the buyer.

BTW, does anyone have Petrol LE VRS's for sale?

If they offered lower interest rates with the scheme, then I would definitely go with it, Skoda's offering 10.6% APR!!!!

Thats a typical finance rate in todays "difficult to get credit" climate. Although the bank base rate is the lowest ever, the interbank lending rate is still very high. This is also why despite the low interest rate, credit cards are typically running between 15-20%+ apr.

I agree that it would be better if the Government had not involved the manufacturers/dealers in the scheme. I can only presume that they've done it this way to make it appear that they are more generous than they actually are.

What the government are actually giving you is £700 because they are clawing back £300 (£2000 x 15%) of it in VAT because they are insisting it is on the 'on the road' price rather than the basic price before VAT is calculated. Beacuse Skoda are giving an extra £500 discount on an Octavia then doing this before calculating VAT would make it £375 extra.

It would have been far better and easier to just agree to give the dealer £1000 for every car they take in part exchange to scrap providing the dealer passes this on to the buyer and youo can still take advantage of the manufacturers promotions.

I am however going to take advantage of the scheme (tomorrow) because I think it's about as good a deal I'm going to get on a £15000 car whilst Skoda are giving an additional £500.

For example my present car is worth about £1000. With the scrappage scheme the price of a new car is £15000 - £2500 which equals £12500. If I sold my car privately and got 10% off the cost of a new one then this would mean that the new car would be £15000 - £1500 = £13500 less the £1000 for my old car = £12500. Therefore it works out about the same but without the hassle of selling my car privately. (I'm assuming that I could get 10% discount from Skoda as this is not unreasonable for other makes).

So for around £15000 it just about breaks even with a car worth £1000 but for new cars that are less than £15000 and/or trade in's that are worth less than £1000 it's a better deal.

Here endeth the maths lesson for today :)

I've been waiting for Skoda to announce their scrappage scheme offers and am very disappointed from what they offered :(

I was planning on getting a LE with the scheme, but it works out hell of a lot more expensive after 3 years than if I take their VAT off offer :eek:

BMW, Volvo and Honda (just to name a few) are offering their existing deals with the scrappage offer (e.g. like 0% interest).. oh well I guess I'll have to put off getting a new car

Usual half baked ill thought out headline grabbing government tosh :mad::mad:

You are better off selling your trade in seperately (second hand car values are holding up very well at the mo) and then going in to a dealer and haggling the **** out of the sales manager.

Anybody who can't get £2k off the price of a family size car at the mo doesn't deserve to be there (IMO of course:P)

  • Author

The problem is I want to get the VRS, on which they offer the VAT off, most dealers are unwilling to give anything more off the list price because of the offer.

Do you still think that the dealer would give 10% off the reduced price?

The problem is I want to get the VRS, on which they offer the VAT off, most dealers are unwilling to give anything more off the list price because of the offer.

Do you still think that the dealer would give 10% off the reduced price?

Only one way to find out............get on the phone.

When I was looking for a new vRS a few years ago I simply sent an email to the sales department of 20 dealers closest to me and said give me your best price.

Some refused to talk turkey on email and insisted I go to the showroom and some didn't respond at all.

However, of the 20 or so I went to about half came back with a price, and my nearest dealer simply said he would beat any quoted price !!

Give it a go.

  • Author

Yup, been doing that... My local one wants to sell me a LE Diesel VRS, don't even want to talk about other options... Found a dealer in Kent who are looking at other options with a new VRS :confused:

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