Scrappage scheme draws used car buyers to new models

In 2009, if you wanted to sell your car for cash then you'd have had better luck with a cash for cars scheme rather than directly selling to used car buyers.

This is because in 2009, used car sales fell to their lowest point in nearly a decade, according to Experian, the global information services company. The company says that their figures, compiled from the DVLA's change of ownership records, include both retail and private sales of used cars.

Experian believes that people who would traditionally have been used car buyers were lured away by the scrappage scheme - where they could trade their older vehicle for cash off a new model. This led to annual sales falling by 5.7% throughout 2009, down to just 6,798,864 used car sales.

"The recession and the scrappage scheme have had a big impact on the used car market" said Kirk Fletcher, managing director for Experian Business Information and Automotive. "Consumers who would normally have bought a used car were now considering a cheaper new car through the scrappage scheme. This resulted in smaller new cars moving into a price range that had previously been occupied by used cars."

Fletcher added that the scrappage scheme has also reduced the number of vehicles available for used car buyers.

"Normally when a new car is bought, a used car inevitably comes onto the market" he said. "However with the scrappage scheme, the part exchange vehicles have been scrapped."

Effectively, the scrappage scheme has made it much harder for people to sell their cars directly onto used car buyers. With many looking to get a new car rather than a used car, then cash for cars schemes possibly offer the best way to sell a car for cash.

Joleen Costello, Leicester, Ford Ka

Francis Monger, Thatcham, FORD MONDEO ESTATE