To scrap or not to scrap

Brits are divided in their opinion on the Government's car scrappage scheme, according to research from moneysupermarket.com.

The UK's leading price comparison site found that only five per cent of respondents are planning to take advantage of the scheme, and a further eight per cent would consider it, however, there are a host of others who aren't seduced by it. One in eight, or 13 per cent of respondents, say they'd get a better deal selling their car privately and then negotiating themselves on the price of their next car. Its clear Brits are watching the pennies at the moment as a fifth (20 per cent) say they can't afford to change their car, while a further 14 per cent say they don't need to change their car.

The research also revealed a third of respondents (33 per cent) admit they don't qualify for the scrappage scheme as their car is less than ten years old, and six per cent don't actually have a car.

Steve Sweeney, head of motor insurance at moneysupermarket.com said: "The Government's £300 million scrappage scheme pot could have been considered by some as ‘a quick fix' solution to the UK's ailing motor industry. It has proved popular with many Brits as one in five of those who have bought new cars since the announcement have done so through the scrappage scheme, our research shows there are many who stand by other options available; selling a car privately and then negotiating on the next model."

Steve Sweeney added: "For motorists wanting to take advantage of the scheme I urge them not to waste any time - once the cash pot is dry the scheme will end, regardless of the March 2010 end date."

For more information, visit moneysupermarket.com