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Consumer watchdog Which? has warned motorists they may be better off buying a used car than buying a brand new one under the government's scrappage scheme.
Launched this week, the scrappage initiative offers drivers the chance to receive up to £2,000 off a new car if they agree to scrap their existing old model.
However, Which? Car has pointed out that not everyone will benefit from the scrappage scheme and people should consider their options before being enticed by the £2,000 incentive.
"Don't assume just because you're getting £2,000 off a new car, you're getting a good deal," said Richard Headland, editor of Which? Car.
He explained that while it may make sense to get involved in the scrappage scheme for smaller vehicles, those looking at purchasing larger, more expensive cars may be able to find better deals outside the initiative, including in the used car market.
Mr Headland concluded: "On more expensive cars, shop around for a bigger scrappage discount or check if buying second-hand is cheaper. If so, it may pay to sell your old banger instead of scrapping it."
The Society of Motor Manufacturers and Traders has recently revealed the car industry remains confident the scrappage scheme will help kick-start the market.
Its latest figures showed a continued slump in car production during April, but it added there is growing optimism within the industry that the scrappage scheme will boost the number of people buying new cars in the coming months.
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