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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?

Peter Maher (Ennis)

Apr 2010 Filed under: scrappage

Expert 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 car park and to that effect is designed to get cars of 10 years or more off the roads. Plus, there is the additional clause that any car 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 car 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 car 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 car 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 cars 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.

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