Goals from Juan Mata and Chris Smalling ensured United grinded out a 2-1 win over Wolfsburg in their second group game.
But Scholes thinks United don't have what it takes to to win the Champions League this season.
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Manchester United players celebrate their win over Wolfsburg at the final whistle
"I'm not sure Utd are good enough to challenge the top teams," Scholes told BT Sport.
"Probably not based on what we've seen so far.
"They are however top of the league and playing with confidence."
GETTY
Paul Scholes doesn't think Manchester United can win the Champions League this term
Louis van Gaal - The Facts
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