Budget - £2000 Scrap scheme... IT DOESNT WORK!!!

[medwayjon]

You get £2000 allowance if you frag a 10 year old or more car. This £2000 can be used against a brand-new unregistered car only.

My example below will show why it is sheer folly.

Mr X has a banger worth £500 in the trade and wants a brand-new mondeo. If he scraps his banger and buys his mondeo he has to find £14,670 in cash. If however mr X decides to buy an ex-demo mondeo with 1000 miles on the clock, the same warranty etc as spanking new, and p/x's his banger for a monkey, he has to find £11,350 in cash.

So by "opting out" of the scrap scheme he gets the same car for a saving of £3320! This prooves that the scheme is simply rubbish.

Based on a "more desirable" car such as an E-Class mercedes the saving would run into figures such as a saving of £14,000!!! for a top-spec diesel.

Also, this hair-brained scheme assumes that people will have the means to buy a new car which may not be true.

Generally (although not exclusively and I get my info from trade press) the person who drives a 10y/o car or older (excluding classics & high-value models) drives an old car because it is all they can afford to own, has savings to purchase or indeed are not credit-worthy enough to get a new vehicle on HP/Lease.

With sub-prime motor-finance shrinking substantially there will be even less funding options and anyway, the maximum credit lines on such schemes would not be enough to fund the majority of new car purchases.

So to conclude, the scheme is intrinsically flawed on so many levels and in my eyes is no-more than a face-saving "at least it looks like we are helping" type of thing from the Labour government.

 

[Cernunnos]

The way you describe it, it does sound potty. There again for many people only a brand new car will do. The irony of it, is that most people who currently own a banger could be more easily convinced to buy the demo or pre registered example. Though I'm sure some people will take advantage of the scheme.

Thing is with the debt the country is in at the moment the government throw £2K's about willy nilly so we can all have brand new motors seems a bit extravegant to me. A complete waste infact.

Why not offer to give anyone with a 10 year old car £2K to scrap it & spend on any car under 2 years old. Now there would be a winner for everyone.

 

[teetime72]

Quite right Jon.HID knows nothing about the car trade,and even she could work that one out.

Politicians should remember.
You can fool some of the people all of the time.

All of the people some of the time.

but you cnn`t fool all of the people all of the time.

Roll on election day.

 

[medwayjon]

We need an election NOW to get this incompetent party out of power.

Camerons speech was excellent and full of truths hard for labour to swallow.....Mr Cameron said: "Today everyone can see what an utter mess this Labour Government and this Labour Prime Minister have made of the British economy."

He added: "The fastest rise in unemployment in our history, the worst recession since World War Two and the worst peacetime public finances ever known.

"As of today, any claim they have ever made to economic competence is dead, over, finished."

All I can say to that Mr Cameron is..... WORD!

 

[Cernunnos]

Quite right Jon.HID knows nothing about the car trade,and even she could work that one out.

Politicians should remember.
You can fool some of the people all of the time.

All of the people some of the time.

but you cnn`t fool all of the people all of the time.

Roll on election day.

You forgot "You can't Kid a Kidda"

 

[haplesshacker]

I to thought the idea was tosh.

If I could afford a brand new car and it's considerable depriciation , I would have done. One of our cars is 19 years old and worth less than £2k. Don't you think I would have bought a newer used car if I had the money? Well yes I would have done. So where's the money coming from for me to be able to afford a brand new car?

Unemployment up massively, folks worried about their jobs, retailers going under daily, people not even buying foreign holidays. Where is the sense in spending even more money on something like a car when we don't even buy holidays, clothes, or take-aways.

It don't make sense.

Damn politicians are blimming idiots.

 

[RGDave]

I'm enjoying this OOB post.

Interestingly, I know lots of folk planning on buying a new car and getting their £2k.

It's not a scheme for me, since I'd never buy a new car unless I started earning much more money. So, I see your point.

It seems a bit silly to me (I don't really know how it might or might not work in reality). The cars that we all want off the road (old, polluting heaps) are not owned by the might-buy-a-new-car drivers.

Hopefully, those with the cash for a new car (but choose to buy a nearly-new) will sell on their half-decent motors to the likes of me.

 

[medwayjon]

The other negative is that if people took this deal up, where would the under £2000 cars that many people depend on come from?

If someone gave me £1000 to buy them a car I could come back with an absolute peach for them, again it only undermines this ridiculous scheme.

 

[USER1999]

Most of the environmental damage a car will ever do is incurred in making it. The sensible thing to do would be to make everyone keep their current car for 10 years minimum. Not good for the economy, but better for the environment,

 

[MVP]

We need an election NOW to get this incompetent party out of power.

an election wouldnt do anything because bankers run this country and the government do as they say as they owe them! no matter whos in power!

 

[Cernunnos]

Just so long as the car is well maintained for the intervining 10 years.

I must say the way things are going I'll run this until I decide I need a new one, but at that point I think if I can I shall Lease-hire as we don't really don't know how long governments are going to let us use cars that use fossil fuels & how long the oil will last.

I've toyed with the idea of something else. Firstly I can no longer afford to consider this, but secondly there is nothing wrong with what I drive, its giving good econemy & its now crept back up to 56.5mpg average So I'm a happy bunny again. I was only considering the idea of a bit more added luxury & comfort

For anyone looking for someting New & really Economical I've had a look at the C3 Picasso Spacebox which is now not much smaller than my XsaraPicasso but with even better econemy & choose the right engine & model & £35 roadfund licence is a possibility. Its a much better solution for modern life for a small family or couple than the C4 Picasso, as that is no-where near as ecomomical as I'd like to see. And its a bit on the big side even in the 5 seet option.

I was looking as the Mini, the BM'One Series, though someting in me was starting to think about Jags & Mercs. But with the advent of the increase in fuel duty from Setember I'd actually need to buy someting older than I currently have & I am in no mind to compromise. I'll happily keep what I have for another 6 or 8 years if need be.

Thing is also if I were in the market for a new car & only had an old banger I don't think in these uncertain times I'd want to tie myself into a long tearm agreement for a new car, I'd be looking very carefully for the best deal on the most economical & most relyable vehicle I could find. So even a 2k sweetener is not going to move me.

 

[Gustavo]

I too have been thinking about getting a 'new' car. I mean a second hand car, no way can I afford to spend more than about £3000 on a new car for the Mrs to be.

My neighbour has just bought two Alfa's for £1500. His mate owns the main Alfa Dealership in Cardiff, he had two part ex's in last week, had full MOT's done on them, belts' changes, new tyres, brakes, oil changes etc, and then sold them to my neighbour, who is a family friend. One is a 1999 146, 74,ooo genuine miles on the clock !!!! , previously owned by a vicar since new, serviced every 6 months since new, downside is, it's gold. The other car is a 2001 156, also one owner since new, 77ooo on the clock. I say he's a lucky get to get them both for £1500. I'm going to see his friend the next time the Mrs nags for a new car. She wants a new Mini, but no way am I buying a new car for her in this climate. Because the dog goes in the car, I'm definitely not buying a new car, but I have bought 3 new vans for work, andI'm happy with them, I got 2 Vito's and a Sprinter. They're being sign written on Friday, I can't wait to see them finished.

 

[Gustavo]

Also, with regards to the current worldwide economic situation, and our own government in power. I can't help but feel either one of two things.

1, It's either not entirely their fault about the way things are financially. It seems almost everyone in the world is in the same boat with regards to being in a financial mess/recession/depression etc. We can't blame Labour for the economic mess in Mexico, Germany,Portugal, Italy,Brazil,Iceland etc etc It seems that we're all in it together, so trust in Labour to lead us out of this mess. I can never forgive the Tories and Thatcher for they screwed this country in the 80's, and by this country I mean Wales. I'll never, ever, vote for the Conservative Party. There's no one in the Conservative Party now that I'd trust to lead this country. The leaders since Thatcher have all been muppets ; Major, Hague, IDs, Howard and especially the buffoon Cameron !!! He's a complete numpy.

2, Labour have absolutely destroyed this country since 1997 and the sooner they are out of power the better.

Now who shall I vote for ????? What's the obvious choice ??? I honestly don't see any real obvious choice to lead this country forwards and not backwards anymore.

This evening's rant over !!!

Sorry for getting all political, I don't know what came over me !!

 

[Leftie]

I could be wrong (usually am according to HID) but as I understand it the Gov't is only putting up £1,000. The other £1,000 is to be made up by the manufacturer.

So. This scheme will probably only be viable on the lower end of the new car market where big discounts are not available - i.e. Fiat 500, Fiesta, Civic, etc. (Just a guess MWJ).

Where bigger discounts are normally negotiable, you won't necessarily get them if you are after the £2K scrap. Manufacturer will offer the £1K that he is obliged to do and then not offer any more discount as he has "done his bit". If you are after a new car on this scheme, be aware.

There again, what do I know

 

[medwayjon]

Yup, the government give a grand and the dealer is expected to give a grand discount.

 

[Leftie]

Now who shall I vote for ????? What's the obvious choice ???

Monster Raving Loony Party

Gone a little bit off track since Such died (he actually had several policies that successive gov'ts took up) but in many ways no worse than the other clowns who milk the system as far as possible at our expense.

 

[backwoodsman]

I can see why anyone in the used car trade wouldn't like this scheme. But that's not the point - its naff all to do with used car sales or used car economics. Naff all to do with economics at all in fact.

And sorry again but if anyone thinks that Cameron and his mates can make a better hash of things then I expect you'll be in for a surprise...

 

[Smiffy]

So everybody scraps their 1.6 or 1.8 old nails and goes out and buys a Citroen C1 or Toyota Aygo (to name just two new cars) which cost £35.00 a year to tax.
The old nails cost £185.00 a year to tax.
The government is now losing £150.00 each year in road tax from everybody that does this....

We're doomed Captain Mainwaring.

 

[Tommo21]

Jon your basing your argument on not buying a new car and is there plenty of ex demo cars around.

The deal is simple…it’s a new car. The main word is new.

You say “So by "opting out" of the scrap scheme he gets the same car for a saving of £3320! This proves that the scheme is simply rubbish”.It proves nothing It’s not the same car, it’s not new if it’s an ex demo…..end of. Here is the best deal, buy a one year old mondeo and you save a small fortune.

 

[Tommo21]

So everybody scraps their 1.6 or 1.8 old nails and goes out and buys a Citroen C1 or Toyota Aygo (to name just two new cars) which cost £35.00 a year to tax.
The old nails cost £185.00 a year to tax.
The government is now losing £150.00 each year in road tax from everybody that does this....

We're doomed Captain Mainwaring.

You’re not suggesting we have higher tax for fuel-efficient cars…no. I never heard anyone complain when the low tax scheme first came out. I’m running a C3 at the moment and it’s giving me over 60 MPG. I’m picking up a Passat this weekend and I usually get 50 MPG with that. The lower road tax is for low emissions, the air we take in. Move on man, the old nails are spitting out crap and if someone buys a new C1 then good for him.