In the budget the Government stated that from May of this year I think, if you have a car or a van over ten years old, you would be entitled to up to £2000 off a price of a new one.
Now maths was never my strongest subject, but cannot understand how this would work.
Anyone who does have a car or a van over the ten year age, surely has one that old as they cannot afford a newer one? Maybe not everyone...don't want to generalise here, bit shall we say most people?
So on that basis how is that person going to afford the additional...how many more thousands for a newer one?
Also a big majority of those that have very old cars or vans, fall into the group of not having a lot of money. If that is the case, and IF they wanted to trade their old car or van in, who is going to give them the finance, or more importantly.....how are they going to afford the payments?
In this economic climate where money is very hard to come by in the way of a loan, the poorer ones surely will find it much harder to get that finance.
So whilst in principle it sounds a great idea, in theory it seems another Government joke.
Mrs777 has a 1998 car that qualifies for the two grand, but I cannot see her changing it for a 8 or 10 grand car. She simply could not afford to do so, as much as she would like too.
Another crackpot idea which sounds fine, but then it does not really fall into reality for most people, just a mere pipe dream for most. So the idea fails before it even gets off the ground.
If they were really serious about this then the Government should borrow the money to people at reduced rates of interest, over a certain period. Even then I do not think many will take up the offer, for they simply cannot afford to do so.
Damn.
I had an old Metro, 1991 model. It was sat on my drive for nearly a year after I crashed it into my house. I eventually got the scrappy to come and pick it up.
But I could have traded that in, got a new car with the 2K, and then sold said 2K car, and pocketed the cash.
Basically it is a free £2000.
Provided you spend upwards of £6500 and have a 10 year old car.
Call me crap at maths, but I think most people would be around £4500+ down on that deal.
It's a way of giving us nothing but making us feel happy we got something. Even if the something is actually nothing.
Kenty, sit down.
I agree with you.
There are families who are by necessity a 2 car family, and it is quite possible the second car will be the car that qualifies for the scrapping scheme.
I just had a nose at the Citroen site, where Citroen are currently offering a number of deals for their cars, one of those deals is for a Citroen C1, which starts from £6395, and qualifies for either a £1400 cashback, or £2000 scrappage, which then takes the starting price from as little as £4395, it is also available on 5.9% finance, for some people, this could be an attractive proposition, the car may be an older one by choice ("it'll do for now") it could be because they havent had the money to replace, but could now possibly consider trading up.
As FB said, it is a choice, nobody is forced to do anything with this scheme.
If, and its a big If, this is being promoted with a Green aganda then we need to examine the facts. It takes quite a while for an inefficient old gas guzzler to even begin to equal the Environmental cost of producing a new car. Keeping bangers ON the road is the ultimate in recycling.
The personal ownership of motor vehicles causes and will continue to cause huge damage to our environment. I think its about time everybody started talking about it.
This initiative is simply a fish thrown to a manufacturing industry seal that is in its death throes.
Yes Kent- pick this up at yer local library
Journal of Industrial Ecology
Volume 10 Issue 3, Pages 159 - 182
Published Online: 8 Feb 2008
©2009, Yale University
The will apply to a dealer price who can sell a car at a price they can get away with .Its allso based on the manufacturers retail recommended price not discount ie:::::
My sister shopped around for a new ford fiesta ...Leicester dealer price
Dealer in Chesterfield.. the same car the same manufacturer 09 plate.....
The chesterfield dealer could not give the for a scrapper as his price was so low anyway ?
The Leicester dealer could have given the discount but didnt , if he had the price would have been the same as the chesterfield dealer ...................
Its really an inflated price con trick to kick start the car industry .........incidently your car purchased today may not be as new as you think ??????
There are stock piled 1000's of cars all over the country in fields rusting away as we speak ......
why not just scrap the purchase tax and vat on cars for a year you would probably pick one up for around
steve
A lot of smoke and mirrors as always ...
A lot of people will look at the £2K and think, wow, that's saving me a lot of money ... but everyone knows that the second you drive a new car away from the dealers, you've already lost several thousand pounds. Depending on what car you're buying, that drop could easily wipe out and may even drawf the £2K scrappage so if you WERE going to replace your old banger, you may still be better off buying a 2nd hand car that's just a couple years old.
Just happens that I'm scrapping my old car because it's an old S reg and just a couple weeks ago, developed a fault that will cost me £800 to fix, way more than the car is worth ... annoying as there are a lot of good parts still in that car ... but I'm not bothering with the scrappage scheme for the above reasons.
Public transport in London is so unreliable and expensive that there's no way I would NOT have a car.