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Scrappage finance rates accusation

Parker’s, the retail car price guide, has accused some manufacturers of increasing their finance rates for scrappage scheme buyers.

“Those with rates normally around 3.9% and 5.9% APR pushed their rates up as high as 8.9% APR when used with the scrappage incentive,” says the guide.

Renault is top of the guide’s ‘worst offenders’ list, with 10.4%, followed by Skoda’s and Peugeot’s 9.9%, Alfa Romeo’s 9.5%, Toyota’s 8.9%, Seat’s 8.5% and Ford’s 7.9%. Consumers buying cars on such finance offers could end up paying more than the vehicle’s list price. 

Parker’s said the Government had made it harder for manufacturers to make a success of the scheme because of the requirement for matched funding, even on low profit margin cars.

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