According to a report by Which?, some manufacturers have raised their list prices by as much as 14% since the scrappage scheme came into effect.
The report singles out several manufacturers, including Ford, Vauxhall and Nissan. It claims that from October 2008 to July 2009, Ford has increased the price of its Fiesta from £11,570 to £13,195. Meanwhile, Vauxhall has upped the price of its Insignia saloon from £17,981 to £20,430 over the space of seven months.
'Most buyers are being attracted by the £2000 discount on a new car, and the scrappage scheme can offer some good deals. But with new car prices being hiked up, the scheme can be a false economy,' said Richard Headland, editor of Which? Car.
A Ford spokesman defended the price rises, which he claimed were a result of the weakness of Sterling against the Euro, rather than related to the scrappage scheme.
Vauxhall also refutes the claims. 'It's true that we, along with many other manufacturers, have raised our prices this year, but this was before the scrappage scheme was announced on 18 May,' said Bill Parfitt, GM UK's chairman and managing director. 'The only reasons we have raised prices are a severe weakening of the Pound versus the Euro, and a sharp increase in the cost of raw materials.'
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