New cars cheaper than used
Popular models such as the Fiat 500, Hyundai i10 and Volkswagen Golf can all be bought new under the scrappage scheme for less than a used version that's up to a year old.
A used VW Golf 1.6 TDI S 5dr (59 plate, 200 miles) we found cost £16,200, yet the same car new is cost £12,430 under the scrappage scheme (including the available VW incentives). Similarly, a Fiat 500 1.2 Pop (08 plate, 23,000 miles) will cost from £6995, while the same car new costs £295 less with a scrappage grant.
Even used car buyers who can't take advantage of scrappage should consider buying new – in many cases the difference can be less than £2000 and that can be eroded further when the extra year's warranty and any low-rate dealer finance is taken into account.
What Car? editor Steve Fowler said: ‘It's a bizarre market this year: new car prices have already risen by 9.5%, but used car prices are an astonishing 30% higher than they were a year ago.
‘It's long been the case that nearly new cars represent excellent value when compared to new, but not right now. Whether you're a scrappage buyer or not, it's worth checking our Target Price and doing the maths to see if it's more cost-effective to buy new!'
New vs used – price comparison