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CAR DEALING FOR TOTAL AMATEUR - MADNESS? - tizadu

Hello everyone.

Here’s my situation. I have a car that qualifies for govt scrappage & have hatched an idea which may be crazy, so I thought I’d ask for some advice.

The idea is:

I buy a brand new car under the scrappage scheme & get £2000 or more discount then sell it straight away. The aim is that I make a profit of about £1000 ideally.

I have to balance the potential profit against the risks of dabbling in something I don’t know anything about (particulary as I can only do this using a bank loan).

What I know so far:

A brand new car depreciates the minute it leaves the showroom (that’s half my £2000 discount gone).

People will be reluctant to buy a ‘brand’ new car with almost nil mileage because of the previous owner on the V5.

My thinking is I should opt for a city car that is in the cheap price range and appeals to a wide range of people. I’m in Cornwall so that would suit potential buyers in Plymouth, Exeter or Devon, which shouldn’t be too far to travel. (There’s not really enough money down here).

I’ve only just started reading reviews. If my idea seems viable, I have a couple of questions – some advice might help me to know what to focus on when making my choice.

I’m not really sure what motivates people when choosing a car. Running costs obviously, reliability – and their specific needs. But I’ve begun to think after a lot of reading it’s not just a hard pro & con decision – it seems people can’t help but use other factors (the appearance of the car, the whole image of the brand name ) even though they may start out intending not to. If I’m right, that’s something I have to think about in my choice – maybe a Peugeot will ultimately be easier to shift than a Hyundai? I certainly found myself being influenced by all the descriptions of the Peugeot driving experience for instance!!

Grateful for any preliminary advice…

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - nick1975

great - lets help you profit from our taxation contributions!!

i assume this is a wind up.

if not better to sell the option to get a car under scappage, dont actually buy the car.

time is running out for this though right

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - WellKnownSid

So... let me get this right. If you're lucky you "might" make £1000... except...

  • You need to borrow the capital cost in the first place... bang goes another few hundred notes
  • At the end of this incredible scheme, you're now car-less because you've just scrapped your old car, plus sold the car that replaced it... so you'll have to go out an buy another one - which will cost a bit thanks to the economics of the scrappage scheme!
CAR DEALING FOR TOTAL AMATEUR - MADNESS? - b308

Before you do anything check the cost of "pre registered" versions of the car you intend to deal in... I suspect that there will be little if any profit in your scheme... and you will have lost the car you have at the moment and unable to buy another equivelent one with any profit you may (or may not) make... I just think that the margins are too tight for this to work!

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - Clk Sec

I would be very surprised if you made a profit, and not surprised in the least if you made a loss.

A wind-up, I think.

Clk Sec

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - rtj70

Madness? Yes.

The car will lose more than £1000 and someone else could probably get a pre-reg one for less than you hope to get. And lets not forget the scrappage scheme is ending soon.

Other losses will be early repayment of the finance too.

If you think you might make £1000 by doing this, how much could you get for the car by selling it?

Edited by rtj70 on 17/03/2010 at 14:54

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - pmh3

I am I alone in thinking that an almost identical posting on this has been made before?

So similar that it probably falls into the urban myth category.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - rtj70

There was a near identical posting on here earlier this year I think.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - scouseford

Not just madness - stark staring bonkers madness.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - tizadu

Well at least I got the feedback I wanted!

Btw, my car is unsellable & undriveable (only good for scrap) & I'm not planning on buying another one right now.

Tried to find someone who wanted to buy a new car so we could split the discount but didn't manage to

So all other avenues exhausted.

Thanks all

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - rtj70

If it's undriveable I assume it has a valid MOT and can be driven to a garage to trade it in. But you'll not make the money you hoped.

Wise to forget about this idea. And it sounds like you have.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - Hugo {P}

Unless you have a need for a new low priced car, or you know someone who does, then, sadly I think you're down to scrapping your old motor.

You would probably make more money breaking it for spares if it's a popular car. You would be surprised at how much some cars break for.

I've often thought about doing this myself as a bit of a sideline. I have broken the odd mini in the past, and more recently, a Fiat Regata for spares for mine, but most of the bits got sold on in the end as I sold my own Regata. The car cost me £25 to buy and I saved about £300 on spares for my car and made an extra £300 on top.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - Andrew-T

If it's only good for scrap, then sell it for just that. I think some places are still giving cash?

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - Ben 10

There was a near identical posting on here earlier this year I think.

I remember that too. Must be a wind up.

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - tizadu

thanks for the suggestion Hugo -

-it's a 20year old Peugeot tho.....!

CAR DEALING FOR TOTAL AMATEUR - MADNESS? - barneybear

I was the poster of a similar scheme where I was planning a 3 way swap of ancient 806 for scarappage that belonged to a friend, they would get a mid-aged Espace from another friend, who would then get my 4 year old Espce. I would then buy a new Grand Scenic. However, like many people have already stated a pre-reg vehicle works out much cheaper than scrappage scheme. I'm pleased to say that we have however managed to reach a good outcome - I bought a new car at £4000 less than list, friends bought my car for book price and have sold theirs privately for £1500, so all ended well.

CaR DEaLING FOR TOTaL aMaTEUR - MaDNESS? - MVP

Troll alert !

 

Value my car