The Government introduced Scrappage Scheme, intended to improve the lot of the ailing motor industry, has lead to some increase in sales. The scrappage scheme guarantees a minimum value for your old car of two thousand pounds when you trade it in for a new car. The old car must have been registered before August 1999 to qualify for this allowance. In the past if you had an old banger of a car worth only a few hundred pounds at the most, it could be impossible for anyone without the ready cash for a deposit to buy a new car because the value of the existing car was not sufficient as a deposit for the new car.However the scrappage allowance saw sales of new cars rise by 2.4% in July and this is the first rise since April 2008. According to The Society Of Motor Manufacturers and Traders over 157,000 new cars were sold in July, with one fifth of them, namely 33,026 bought under the scrappage scheme. The most popular car is the Ford Focus, and this is a reliable and reasonably priced car. People will normally arrange hire purchase or a personal loan to buy this kind of car. However if you prefer a more classy marque such as a BMW or a Mercedes Benz, you could use the two thousand pounds as a fair deposit, and arrange a homeowner loan or a remortgage to fund the balance. A homeowner loan or a remortgage can be taken over a much longer repayment period than hire purchase, and will enable you to buy the car of your dreams with repayments you can afford.
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