Government to offer loans to buy cars

Generali

Sir_Humphrey wrote: »

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

Which specific purposes?

What do you do if people spend the rest of their disposable income on 'bad' things?

Who pays?

Any

Wookster wrote: »

Well how do you propose to give people money?

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

I think you lost a track of this argument now... Do you remember, the whole think s t a r t e d b e c a u s e g o v e r n m e n t w a n t to lend people money to buy cars... (I thought if I slow down it will help. people often say I speak too fast:p )

Any

Sir_Humphrey wrote: »

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.

Thank you sir Humphrey!
That is exactly the point I have on my mind. How is anything going to recover if people are WITHOUT JOBS???

Wookster

Sir_Humphrey wrote: »

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

Lets take cars - what's to stop me buying a BMW say? Who gets the benefit then?

Who does credit checking? Who recoups slow payers?

The government? They can't organise a !!!! up in a brewery.

Wookster

Generali wrote: »

Who pays?

The government of course - just give them more vouchers :T

Generali

Let's remember that you guys haven't worked out who's paying the bill or how large it's going to be.

I'm just glad my kids ain't paying for all this madness.

Wookster

Generali wrote: »

I'm just glad my kids ain't paying for all this madness.

I will be leaving the UK as soon as I can find a decent job abroad.

Rochdale_Pioneers

Wookster wrote: »

I will be leaving the UK as soon as I can find a decent job abroad.

You'll struggle. Surprising as this may be to you there is a recession abroad too.....

WestonDave

I suspect this will turn into a re-run of the mortgage assistance which ended up helping about 9000 households.

Surely part of the problem is that the credit worthy don't want to borrow to spend on things they don't need, and the people that will spend just for the hell of it are maxed out on debt so shouldn't be borrowing any more!

As my car is now approaching 9 years old I went looking at what there currently is on the market. If I wanted to I could get finance to buy a car on credit - varying interest rates, terms and deposits. Even as recently as November my bank gave me a £8k limit 0% credit card so its not that you can't borrow if you want to - the real problem is that those with capacity to do so, have more sense than to land themselves in debt when they are looking over their shoulders at their job situations.

So from that I can only conclude that this scheme will either help very few people (who are borderline credit worthy) or it will end up pouring money into the pockets of those who have already spent too much. I don't fundamentally disagree with supporting efficient industry to keep a UK operation going but I just don't see how its actually going to work (even more so as has already been said 70% of production is going for export so even if our buying normalises the likely overall effect will still be down significantly).

Sir_Humphrey

Wookster wrote: »

Lets take cars - what's to stop me buying a BMW say? Who gets the benefit then?

Who does credit checking? Who recoups slow payers?

The government? They can't organise a !!!! up in a brewery.

I think you are thinking of banks with your brewery analogy. The govt make loans to people (eg student loans) and the service is no worse than the private sector. The alternative to government action is a depression that lasts long enough to destroy the current economic system. See my signature.

The money will be repaid in future, partly through higher taxes (this would happen even if the govt did nothing as there would be a smaller pool of taxpayers) and the greater growth leading to higher tax revenues at a given tax rate. In other words, the government would repay the money in exactly the same way a private company repays a loan, through a return on investment (a larger economy).