HI guys,
I have a 15 year old Clio which qualifies for scrappage and I'm looking for another car.
While I wasn't planning to buy a brand new car - I now see this as the only opportunity to squeeze maximum value out of my existing car as on the secondhand market everyone wants it for free. Which I can then put towards the car I really want.
So, your challenge today is to advise;
What make/model of brand new car should I go for under the scrappage scheme in order to then sell it quickly as a 'Brand new used car with delivery mileage' on the used market - so I can make a profit (more than I would get just by selling my 15yr old Clio & at the same time removing a polluter from the streets)???
I was thinking cars which are trendy - Mini, Fiat 500....
OR
Under scrappage, is it to possible to pre-order something like the new 2010 Astra?
Basically, something which even if I offer for £1k less than the dealer price (hopefully leaves £1k profit for me) there will be eager takers...
Thanks,
Mark.
Edited by Pugugly on 10/10/2009 at 18:21
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is not the flaw in your plan that if something is in very high demand that you will wait just as long as a prospective buyer?
I would imagine if you go and order a Mini or Fiat 500 now you're looking at a max 3 months wait...will people really pay up for that?
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Having just jumped thru the scrappage hoops I can tell you that, from the mpoment the dealer gets the paperwork for your trade-in and accepts the car as part of a deal you have 4 months to go thru with it. With Xmas coming up that almost certainly rules out any factory builds. The car I wanted couldn't even be specefied with any extra for a factory build so I have accepted one from the forecourt which is OK but not in my prefered colour. Popular opinions seems to say that the Mini holds value best.
Edited by Armitage Shanks {p} on 10/10/2009 at 18:47
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I've jsut ordeded an Arial Atom, mostly as its as much fun as its possible to have and still be legal on the road. It also suffers from nearly zero depreciation.
However I can't see them participating in the scrappage scheme and the 20 month waiting list is likely to be impractical.
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If I was looking to buy a new car and didn't have anything to trade I'd be straight to a broker so you need to beat their prices by some margin too.
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How will you sell this on the second hand market?
Will it be via the usual ways, internet, trader mags etc. or have you already lined up a purchaser?
I can predict you will have it long enough to wipe out any profit you think you can make. Private buyers will be suspicious and usually are not in the market for expensive second hand cars, though the deal would be a bargain to someone.
Good idea, and it looks good on paper, but the reality IMO, is you will be stuck with it for quite a while.
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A neighbour of mine used another neighbours scrap car to trade in against a new Mini, saving himself £2K, then registered the car in his neighbours name and then bought it off him for a pound, splitting the £2K gain between them. Is that allowed? Personally sounds like a lot of messing about!
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One of the biggest hits you are going to take is the VAT element before any depreciation.
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I don't think at the original conception of the scrappage scheme the policy makers had visions of the streets of England being filled with Arial Atom's which I'm guessing but have rock hard suspension and kick out tonnes of CO2 driving home from Sainsburys
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I really wasn't being serious suggesting an Atom for your cunning plan.
It's more environmentally friendly than most cars, the suspension is fully adjustable so sensible on the road and they only build six a week, so never going to fill the streets with them.
I suspect they would laugh a lot if anyone ever enquired whether they were participating in the scrappage scheme.
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I don't think this plan will work either, but the answer to your question is the Mini. SWMBO's convertible is her third Mini, and the first two have been worth 80 % of their cost new after 20 months. (We change them sooner than would seem sensible as they're on a 2-year PCP.) Minis seem expensive to buy, but the slow rate of depreciation means they are better value new than they look. Not so good secondhand.
Factory orders (I think Minis are all built to order) in our experience take about 6 weeks.
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you will not make a profit on the sale of any car even with scrapage. Why would anyone buy your second hand car when they can get a brand new one for the same price?
Edited by Altea Ego on 11/10/2009 at 00:10
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sorry I may not be Carol Vordemann but why wouldn't they?
Let me do some very rough and basic maths.
CAR X - price from dealer £10000
SELLER 1 - price from dealer under scrappage £8000
I sell CAR X to BUYER 1 for £9000
BUYER 1 has just saved £1000 on buying the same car from dealer.
SELLER 1 has made tidy profit.
CAR X may be secondhand, but it has delivery mileage, hasn't been used, all plastic covers in place just as if the dealer had delivered it to BUYER 1's house.
Explain to me again why nobody would buy this brand new car for £1000 less than they would have to pay buying from the same dealer?
Oh I know, people don't like saving money during a recession...
Edited by markiexxx on 11/10/2009 at 11:48
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Ok here is how it works in practice Carol.
Car X price from dealer 10,000
Seller 1 price from dealer under scrapage 8000
You *dont* sell car to buyer 1 for 9 grand, its now second hand 0- ie second owner on the v5 best you will get is 7 grand.
You see buyer 1 can go to dealer and get car for 8500 without scrapage.
Can i have a P please carol?
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Yes you can have a P - please proceed to the bathroom and don't leave the seat up.
I don't think you've had your weetabix...
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"I sell CAR X to BUYER 1 for £9000"
As easy as that then. How do you intend to market it. As AE said, one owner on the V5 with delivery mileage, you've no hope shifting it quick. You will lose your PROFIT in no time.
Go ahead and let us know how you get on. If it's that simple, we would all be at it. I think the wait to get a scrappage deal car is a deliberatre ploy to stop this kind of thing happening.
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A cash buyer will easily get £1000 off the same car in the dealer or via a broker. But they would be the first owner. Yours would be second hand and lose more than £1000 as soon as you get the keys.
And the cash buyer probably could get the car on 0% APR deal with a 50% deposit so keeps £4500 earning interest in the bank.
Your plan is seriously flawed and you asked for advice and got it. Now should you ignore that advice then that is your choice. But you may end up with a car you don't actually want and cannot afford to sell it because it will be for less than you paid for it.
As for an Atom... you're unlikely to get as there is a restriction with the scheme that cars have to be available in about 3 months max I think. So some VAG cars for example have longer lead times and therefore you cannot get one.
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Ah it would have to be a Green Alpha Romeo 3.0 V6 ;-)
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And remember the 2k scrappage is made up of 1k from the Gov and 1k from the manufacturer,to sell your 10k car on to a punter would at best need to see the price around 8k,no profit there.
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I am sorry to also pour cold water on your scheme but in the real world the only cars that will appreciate are cars that are in short supply .
A £2000 discount is nothing on a new car !! I recently bought a new car which had just come out ( and I believe there is 17 weeks wait now on the model I bought )so it was not a model that is at the end of its production run and with manufacturing incentives and the discount obtained from the dealer in matching a car brokers price the saving was about £4000 .
You do not buy new cars to make money only dealers do that or if you are very lucky
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I wonder what the current S/H price is for a 58-plate Kia Magentis 2.0 - they were 50% off this time last year (around £7500 each if you bought 2).
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The thread originator seems to be forming an opinion. So let him carry on. Nothing to do with any of us. If he gets lucky result.
Cannot see how we can offer more advice as he seems to have formed an opinion. So little point saying "don't do it" anymore.
His money I suppose.
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I think he might scrape a "profit" with a c1/107/Aygo/Panda type car - hardly worth it tho as likely to be a handful of hundreds, and not repeatable unless he has a string of bangers to chop in.
If the banger in question could be put through an auction and make 300-400 (why not, it needs to have a current MOT) then it makes it all rather moot.
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I think the mini convertible when it first came out was selling for more then the list price,
Even if you make a £1000 profit your left without a car, so you would needto spend your £1000 on buying another one. Unless you do not need a car?
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Crikey thats an ambitious plan just to make £1K, especially in the current climate.
I think its a bad idea and I would leave it alone if I were you.
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