Government to offer loans to buy cars

Any

Generali wrote: »

Sorry to be a little dumb here.

Are you saying that the Government should cut taxes so consumers can decide where stimulus money should be directed?

That would be great if they could afford that.
Maybe they could?

What I would saying is that this argument started about government lending us money to buy cars, not about government going to give money to a company.

Wookster

StevieJ wrote: »

If you cut taxes (direct) some people will simply put the savings in the bank,

Or use money to pay down personal debt, which will filter through to banks who can eventually lend more.

The UK has had an extremely low savings rate over the last 10 years. Don't you think its about time for that to change?

Any

Wookster wrote: »

That's hardly "secure" lending as you describe above, is it? When a business goes to a bank they want to see a business plan, sensitivity analysis and then analyse how much headroom there is. What you are proposing is a blank cheque with no security.



Companies didn't need to change their ways until now - they had ample time to develop greener, alternate fuel cars and that hasn't happened until now.

The music has stopped and there are not enough chairs.

Where did you get that one from? Or do you need glasses? Maybe less drugs.
I don't remember saying "give everyone a loan".

Generali

StevieJ wrote: »

If you cut taxes (direct) some people will simply put the savings in the bank, or under the mattress

They will but at least that way they can choose how to spend their wages. That is A Good Thing from my perspective. Many posters disagree, several in quite strong terms.

If taxes are cut for lower earners they are more likely to spend the money than richer people.

StevieJ

Wookster wrote: »

Or use money to pay down personal debt, which will filter through to banks who can eventually lend more.

The UK has had an extremely low savings rate over the last 10 years. Don't you think its about time for that to change?

Eventually is fine, eventually is when these companies have gone bust :eek:

Generali

Any wrote: »

That would be great if they could afford that.
Maybe they could?

What I would saying is that this argument started about government lending us money to buy cars, not about government going to give money to a company.

I think I misunderstand you then.

Do you want to lend people money or give it to them?

Sir_Humphrey

Wookster wrote: »

Or use money to pay down personal debt, which will filter through to banks who can eventually lend more.

The UK has had an extremely low savings rate over the last 10 years. Don't you think its about time for that to change?

Except they wouldn't have the money to pay down debt as thier income would be cut or they would be made unemployed. It would to more defaults. Savers are not immune from recession. How many times does this obvious point have to be made? And how are car companies supposed to produce electric cars without R&D funding for development? Companies like Tesla will be affected by the credit crunch too you know. Even if you were right, the process you describe would take decades.

kennyboy66_2

Generali wrote: »

Not for poorer people priced out of driving cars!

I pay about 40p/litre for petrol so poor people can drive to work where I live. In the UK you pay a quid so they can't. In the UK petrol is taxed very heavily so poor people have the choice between the bus and Shank's Pony.

The reason for the difference? UK Governments claim driving is wrong so try to stop poor people from driving. It doesn't stop the rich of course.

I thought petrol was closer to 50p per litre (at least when I was there in August), I filled up yesterday fo 84p, so it hardly helps to exaggerate.

Most poor people are excluded from car ownership because of the high fixed costs rather than petrol costs.

Wookster

Any wrote: »

The idea is to give us the money and we will choose which company to buy from.

Well how do you propose to give people money?

Is it a loan? Or is it via reduced taxes as Generali states?

Sir_Humphrey

Wookster wrote: »

Well how do you propose to give people money?

Is it a loan? Or is it via reduced taxes as Generali states?

It is quite easy to provide loan vouchers for specific purposes.