Car scrappage scheme

[renault12ts]

The news media have finally caught up with views expressed on this forum re: car scrappage. In other words , the existing discounts are already better than the £2000 discount available to scrap your 10+year old car. They showed a Focus which cost £13500 under scrappage, or £10,000 with existing discounts!!

 

[st13phil]

When the UK's scrappage scheme was announced it looked to me like the real intention was to introduce something so that politicians could seen to be "doing something" and were not so obviously out of step with other European governments, but to make it so laughably unattractive that it would achieve very low take up and therefore cost nothing

 

[jaymanek]

yes but the trick does seem to be working with some... Honda say they are selling an extra 50% due to scrappage.

 

[Dryce]

yes but the trick does seem to be working with some... Honda say they are selling an extra 50% due to scrappage.

Well consider that Honda sell quite a few small/mid range expensive cars to pensioners.

There's a good few in that category who don't always drive such a hard bargain and esp with Honda don't expect a discount.

So the Scrappage Scam probably suits Honda perfectly. A reasonable % of their customer base are tempted to trot along with no fear of haggling to get the scrappage 'discount'. Meanwhile Honda maintain the fiction of list and deny (horror of horrors) actual discounting.

Cynical? Moi?

 

[crammy69]

Our freinds just used the scrappage scheme to buy a honda civic. They got a £2000 discount and then the £2000 scrappage on top!, oh and 0% finance over 3 years.

For some buyers that happen to have a 10 year old scrapper ( in this case a 20 year old vauxhall worth nowt) AND were looking to buy a newer car, its a good scheme, but as far as re-igniting new car sales, its not much use. All it may do at best is bring forward some purchases that would in all liklihood havbe happened anyway.

 

[st4]

Our freinds just used the scrappage scheme to buy a honda civic. They got a £2000 discount and then the £2000 scrappage on top!, oh and 0% finance over 3 years.

For some buyers that happen to have a 10 year old scrapper ( in this case a 20 year old vauxhall worth nowt) AND were looking to buy a newer car, its a good scheme, but as far as re-igniting new car sales, its not much use. All it may do at best is bring forward some purchases that would in all liklihood havbe happened anyway.

And I have to ask, where is the public benefit of your friend having brought his new car purchase forward a bit.

There will be an associated dip in car sales when this scheme is axed so its putting off a bad problem for a bit longer.

 

[Dieselman]

There will be an associated dip in car sales when this scheme is axed so its putting off a bad problem for a bit longer.

I suppose the intention is for the manufacturers to have reduced production to suit demand by then and demand may increase anyway once the economy picks up a bit.

This is to get the manufacturers over a dead spot.

 

[st4]

I suppose the intention is for the manufacturers to have reduced production to suit demand by then and demand may increase anyway once the economy picks up a bit.

This is to get the manufacturers over a dead spot.

The best made plans of mice and men....

 

[crammy69]

And I have to ask, where is the public benefit of your friend having brought his new car purchase forward a bit.

There will be an associated dip in car sales when this scheme is axed so its putting off a bad problem for a bit longer.

I guess the only benefit / logic behind it is that by keeping the car industry ticking along all those workers are kept in jobs and paying tax instead of being on the dole? Oh and the fact that all the goverment is actually contributing is back the Vat it would earn on the sale anyway!.

The so called capitalist economy we have is somewaht dysfunctional at present to say the least!

 

[MPG]

In Germany the scheme has been popular, but crucially they allow the discount to be applied to vehicles upto a year old - not just new.

 

[davidjpowell]

But the way that this goverment has implemeneted the scheme, in many cases it will cost them less then the £1,000 - as it only applies to new cars where VAT is payable. So if the car costs over £6,666.66 and providing the new sale was not going to happen in any case they are actualy in profit!

 

[Colin_b]

The people I know who would qualify either can't afford a new car, or don't buy new cars on principle.....

 

[grober]

Lets take a look at the "pre scrappage "scenario then. Man with aging Merc say a 1998 W202 C class 180 in metallic green 105,000 miles on the clock goes into his local ford showroom to buy a new Ford focus zetec 1600 diesel. Pause for short intake of breath thro salesman's gritted teeth followed by ( chose one or all of the following appropriate responses)--- aah green that's a pity, I'm afraid there's not a lot of call for big cars now, you see your trading in a big car against a small economic one,105,000 miles that's a fair mileage, an old merc--- expensive to repair them, there's no discount with a trade in sir, the discounted price in the advert was just for that one car, no we havn't got any more in stock at that price, well I suppose I could phone around the trade for a price for your car but it would only be £300 ish, no we don't seem to have any low mileage second hand cars -there's been a bit of a rush on them etc etc etc etc. What appeals to people about the scrappage scheme is they get a fixed value for their car of £2000. ( it may well be worth a lot less ) They can then go and look for a vehicle with a published list price round a number of dealers and get the best discounted new price deal. It avoids the rather wearing scenario where every visit to a dealer involves protracted and not very transparent machinations to broker a deal which you may not end up taking anyway??

 

[renault12ts]

I got £1000 for my 1997 Blue C180 classic estate with 108,000 miles off a E320CDI. Cost to change £4000. I could have traded it in against a new E320CDI...cost to change ( with £2000 scrappage ) c.£32,000. You do the math ( as they say in US of A ).

 

[219]

Lets take a look at the "pre scrappage "scenario then. Man with aging Merc say a 1998 W202 C class 180 ....... you see your trading in a big car against a small economic one

To me , a W202 is 'nearly new'

and certainly not a 'big' car !!!!

Cars made since W201/W124/W126/R129 just don't appeal to me ( W140 - I like the looks of but put off by horror stories of unreliable electronics ) .

 

[renault12ts]

I agree. A W202 180 will get 40mpg very easily. And although old will still be better in so many respects than a new "cheap" car.

 

[acm718]

It is a very silly scheme.
If you have a sub £2k car, chances are you don't want to spend five times that on another one.
Unless you're happy to go out and get a heap of, yep, credit
I thought credit and borrowing money was the work of the devil = bad for the economy.
AND, if you buy a new car, it'll most likely be imported = bad for the economy.
AND bad for the environment. Keep what we already have, rather than wasting resources making something new.
AND car tax - pre 2001 cars are (if you're talking half-decent motors) cheaper to tax.
Hmmm, ten year old quality motoring, or a bank loan and a new Citroen that'll be worth pennies within months.
Tough choice
Unless you're an MP on expenses.

 

[Dieselman]

It is a very silly scheme.
If you have a sub £2k car, chances are you don't want to spend five times that on another one.
Unless you're happy to go out and get a heap of, yep, credit

Not always true though. We had an old banger worth nothing and changed for a car worth more than £10k. Chopping £2k out would have been a nice sweetener.

 

[janner]

I can see the benefit for someone who has an old, knackered fiesta or something chopping it in for a brand new Kia Picanto (which I happen to think is a great small car) at £4,200 with a 3 year warranty. Not quite sure how that's going to help the economy though.

 

[acm718]

I bet if you did have a £50 Fiesta that was MOT'd and you'd owned it for more than a year, AND had a few grand burning a hole in your pocket, going into a dealer with said Fiesta and a suitcase of cash would get a similar result to the scrappage scheme.

The Focus for less than the scrappage scheme on page 1 proves it's daft, but hassle-wise I suppose it's easier just giving the dealer the keys and saving 2k - no Autotrader bargain basement advert and no negotiating with the dealer, something a lot of people aren't that comfortable with.

And the real biggie is why not buy something 6 months old instead?