What is the point of the UK Government’s "scrappage scheme"?
From a layman’s point of view its seems a bit pointless.
Pretty much everyone I know, without exception, who drives an old banger does so for one of two reasons:
1) They do not have sufficient cash for buy a new car and cannot afford to take on the added expense of a monthly payment on a car finance plan/loan.
2) They do not have sufficient cash to buy a new car and have a poor credit rating (CCJs, defaults or no history) which means they cannot obtain a finance plan/loan.
Hence the reason they have to make do with their battered old M Reg Fiesta etc.
OK so I understand that the Government will give you £2000 or whatever for your fiesta in exchange for buying a new car. BUT that still leaves £4,000 or however much to pay for the new one. Which leaves exactly the same problem – you either need the cash or you need a finance plan to pay the remainder.
Making it unaffordable for many and impossible for those with poor credit.
So who exactly is this scheme supposed to help? Other than the wealthy pensioner who’s hung onto his old Rover through sentimental reasons perhaps? Or someone who’s just come into a lot of cash after Granny died?
Or am I missing the point here? Because I can’t see how it will make any impact on the environment at all . . .
Plus, during a recession when many peoples’ jobs are insecure, encouraging people to get into debt to buy a new car is really irresponsible.
Sherlock – wow you’re full of snobbish judgements aren’t you?
Just out of interest, how do you know that people who are on low incomes or with poor credit are automatically "irreponsible" with their finances?
Has it not crossed your mind that there is a recession on and job loss and wage cuts have left many living on a reduced income and struggling financially? Probably not, that would take intelligence to work out . . .
Oh and if you couldn’t "afford" a new car before, knocking a couple of grand off the cost of a car which costs £15,000 isn’t going to make it any more "affordable" is it?
Sinple maths.
The only people who have used this scheme is those who were planning to replace their cars anyway.
The Government stands to gain on all new cars bought (are your surprised?) They’ve raked in millions in VAT alone.
Second had car dealers have fewer cars to sell
And the most absurd story I heard was some friends decided to scrap their car for a new one last summer. The car had 4 weeks MOT left. However to scrappage process takes about 8 weeks and the car must have an MOT at the time of scrapping. They had to spend £400 to get the car through its MOT in order to scrap it! How environmentally friendly is that?
well its been a complete sucess so far, its easier to save £4000 than £6000
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The Government stands to gain on all new cars bought (are your surprised?) They’ve raked in millions in VAT alone.
Second had car dealers have fewer cars to sell
And the most absurd story I heard was some friends decided to scrap their car for a new one last summer. The car had 4 weeks MOT left. However to scrappage process takes about 8 weeks and the car must have an MOT at the time of scrapping. They had to spend £400 to get the car through its MOT in order to scrap it! How environmentally friendly is that?
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It’s just government spin to make them self’s look good.
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To stimulate new car sales. Given that there arre no major British Motor manufacturers this, while securing British jobs, will benefit companies like Nissan , General Motors , Ford etc.
Also on a £12K car – the govt gives £1K scrappage , the manufacturer does , but the govt rakes in £1.75K from the sale , so what are they really giving away??
Also it’s so ecologically unsound it’s unbelievable
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http://www.sevendaysin.co.uk/
One thing that I have noticed, is that New car prices have risen probably by over £2000 since the scheme came in, so we are in theory NOT saving £2000 on a new car through the scrappage scheme. The only people benefitting from the scheme is the government and the car companies.
Naive people think they are benefitting, while in actual fact you are probably losing money part ex-ing your old car:
If 1 year ago your car was part-exed for £500 in exchange for (example) a Brand New Suzuki grand vitara for £12,000, it would cost you £11,500, but now that Suzuki grand vitara is worth £14,000, you get £2000 for your old car, the vitara cost you £12,000.
I know this because I was looking for one for my wife last year and have been recently looking again and all the model cars I have been looking at have risen by this amount, in some cases more, so something is going on ?!?!??!
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Slavishly copying the USA again, I reckon.
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It’s designed to get polluting old wrecks off the road and replace them with less polluting, safer cars.
It puts a lot of people in the position of buying a new car they could not otherwise afford and the figures speak for themselves, it has been a huge success.
Perhaps if the people you know conducted their financial affairs in a more responsible manner they would not find themselves in a position whereby they are excluded from the benefits of this scheme.
If someone cannot afford to buy,run,maintain,tax,MOT and insure a car then they should do without. It’s a simple economic decision, no one has the right to a motor car and it’s certainly not the Governments responsibility to underwrite the cost of one.
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It is the only way of getting rid off what was once known as electric shopping trollys with an electric lawn mower engine enhancment and if any body really thinks the government are giving you something for nothing then they are not living in the real world
What do we have as a result lots of second hand cars going cheap
Why do only Fools and horses work?
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It is solely there to boost the motor industry which in turn will ”improve” the current economic situation and more importantly, keeps the prices of oil up as demand remains on a high level. Again, its all a fraud portrayed for our benefit when in reality it is obvious why they offer such deals. This in effect could help the economy in the short term but long term it will make it a whole lot worse with inevitable added economic inflation through all the finance deals issued.
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It props up the car industry that they have spent the last 12 years attacking. On the bright side it has taken 300,000+ cars that were probably unsafe off the roads.
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The political purpose was to provide a limited stimulus to the new car market, which it has done elsewhere. And this has been the result.
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There’s no pleasing some people. In case you hadn’t noticed we are in a recession, the car industry in particular has been badly hit. The car scrappage scheme was to help stimulate it and get the economy in this sector working. It has been such a success that the car industry itself wants the government to increase the amount of money it has put in so that it can be extended. If the government hadn’t done this then there would most likely have been a few thousand more unemployed. As people know that it is a limited offer, those that can afford a new car are taking advantage of it. For the person that says cheap cars have got cheaper, it is actually the other way around, cheap cars have got more expensive as there are less of them about. I don’t expect a lot of you to agree with me as you have already decided in your minds to knock anything that this government does. That doesn’t mean the governments idea is wrong, just that you are to stubborn to give them credit for anything.
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