In the midst of a recession it may not seem the best time to buy a new car. However, insurance experts Be Wiser suggests now may be the best time to buy ahead of the end of the scrappage scheme and VAT hike.
Mark Bower-Dyke, Chairman of Be Wiser Insurance, comments “As of August 23rd orders were at 185,273 units. On top of this the September plate change fuelled a further push. Those who wish to take advantage of the scrappage scheme need to know their time is running out.”
Over 10,000 cars have been sold on average each week under the scrappage scheme, with industry sources estimating that 70% of the drivers taking advantage of the scheme would not otherwise have bought a new car in 2009.
Mark Bower-Dyke continues “Motorists driving a car eligible for the scheme have been safe in the knowledge that their car is worth at least £2000 – as soon as the scrappage scheme ends this will no longer be the case!”
Without the scrappage scheme, a small new car which would have cost £4,000 will now cost £6,000. Further savings are made while the current VAT reduction is in force - but with time running out on that too, there really is no better time to buy a new car.
Mark Bower-Dyke continues “Not only will car buyers miss out on the savings offered by the scrappage scheme, but they are facing a 2.5% increase in VAT at the end of December. On top of everything else this is just salt in the wound!”
The scrappage scheme aims to get older vehicles off the road and encourage consumers to invest in new, safer and potentially more environmentally friendly cars. Even if your car is safer to drive that is no reason to settle for sub-standard car insurance.
Mark Bower-Dyke concludes “While motorists may think they are strapped for cash during the current economic crisis, there hasn’t been a better time to buy a new car. Just make sure you have high quality car insurance. Be Wiser offers free breakdown cover and free legal protection as standard for added peace of mind.”