Car makers deny scrappage rip-off
31 July 2009
Car makers have increased the price of new models by as much as £2,795 to offset the scrappage scheme discount, it has been claimed.
Consumer magazine Which? Car today published a report which said the list prices of certain cars have risen between September 2008 and July 2009.
Models include the Ford Fiesta and Vauxhall Insignia, which have risen in price by £1,625 and £2,499 respectively.
Find out some of the cars which have been scrapped:
Which? Car claims the increase has been made to make up for the £2,000 scrappage discount, which is offered to buyers in exchange for a ten-year-old car.
The government pays £1,000 and each car maker signed up to the scheme pays the other £1,000.
Could you scrap your car for £2,000? Find out on Auto Trader’s scrappage site
The car makers in question shared their views with Auto Trader.
Ford
"Our price rises are nothing to do with the scrappage scheme."
"The pound has depreciated since the middle of 2007 and we have to recover the costs - other manufacturers are doing the same."
Vauxhall
"We have had to increase prices because of the worsening of exchange rates.
"Manufacturers who produce their cars overseas may not be hit as much."
Nissan
"The whole industry is facing difficulties at this time.
"The reason our Micra Tekna model went up in price is because features such as integrated Bluetooth which were optional have now been made standard."
Peugeot
"We have no policy of pricing cars in accordance with temporary government schemes.
"Realistically we watch the prices in the marketplace car-by-car, and price our cars competitively."
Citroen
Citroen declined to comment.
Some car makers have dropped prices since last year - the Volvo XC90 was £970 cheaper in July 2009 than it was in September 2008.
Are you scrapping your motor for a new one? Have your say on the Auto Trader Blog
Here are the top nine increases:
| Car | Price (September 2008) | Price (July 2009) | Price change | Per cent increase |
| Ford Fiesta 1.25 Zetec* | £11,570 | £13,195 | £1,625 | 14 per cent |
| Vauxhall Insignia 1.8i SE** | £17,981 | £20,430 | £2,449 | 14 per cent |
| Citroen C5 1.6HDi SX | £16,200 | £18,195 | £1,995 | 12 per cent |
| Ford Galaxy 2.0 Zetec | £24,050 | £26,845 | £2,795 | 11 per cent |
| Ford Focus 1.8 Zetec | £16,350 | £18,195 | £1,845 | 11 per cent |
| Nissan Micra 1.4 Tekna | £11,200 | £12,395 | £1,195 | 11 per cent |
| Ford Mondeo 2.0 Titanium X | £23,300 | £25,645 | £2,345 | 10 per cent |
| Peugeot 308 1.6 SR | £16,215 | £17,745 | £1,530 | 9 per cent |
| Peugeot 407 2.0 Sport | £22,162 | £24,245 | £2,083 | 9 per cent |
*Price at launch in October 2008.
**Price at launch in January 2009.
View video footage of 2009's best-selling car, the Ford Fiesta:
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