Government to offer loans to buy cars

Graham_Devon

mizzbiz wrote: »

Now that's unusual, because I could have sworn that it was down to $40 a barrel. Even accounting for the exchange slump, it should still be going down.

Diesel has gone from 94.9 to 97.9 here.

Will be over £1 again soon. The £ has slumped a long way, enough for it to effect many prices!

lrr_2

Am I missing something?????

People are struggling to pay basic living bills and getting paid off but the government want us to buy cars?????

Are they bailing out Land Rover, the cars that they dont want people to drive due to not being eco-friendly and slapping them with high road tax?????

Am I getting this right?????

Gordon Brown is an embarrassment!!!!!

Im ashamed to say im scottish because of him, however I would just like to point out that not all scottish people are idiots like him!

wymondham

lrr wrote: »

Am I missing something?????

People are struggling to pay basic living bills and getting paid off but the government want us to buy cars?????

Are they bailing out Land Rover, the cars that they dont want people to drive due to not being eco-friendly and slapping them with high road tax?????

Am I getting this right?????

Gordon Brown is an embarrassment!!!!!

Im ashamed to say im scottish because of him, however I would just like to point out that not all scottish people are idiots like him!

I'm pleased it's not just me thinking this!

Generali

StevieJ wrote: »

You have an admirable Laissez-faire attitude for someone that doesn't live in the UK It's a good job you never lived in France :eek:

Actually I lived in France twice. The horrors of French bureaucracy influenced some of my views.

It's interesting that nobody on this thread or any others about the various bailouts is prepared to look at the costs and who is going to pay them in any serious way. The reason, IMO, is that as soon as you do it becomes clear that it's not possible for the taxpayers of the UK to pay all the losses of the banks, car makers, builders and goodness only knows who in future while also making good on currently unfunded future liabilities.

piggeh

I doubt the 'bail out' today will really have an effect. There's no subsidies for those being temporarily laid off, many are leaving as it's pretty unfeasible with all the reduction in hours and lay offs to support mortgage payments etc (it's a sign of desperation, those leaving know how tough the job market is, but they have no choice). These people will still leave the industry after today's news and will continue to add to the unemployed roster.

Secondly, people can get cars anyway - dealer my sister works at sold 11 cars on Saturday - if people want a car they can still find the finance for it! People just don't buy during uncertainty, and these manufacturers were obviously basing profits on unsustainable 'financially engineered' levels of sales anyway.

The move today has done nothing to stem the losses facing many OEMs and suppliers, lay offs will still need to happen, suppliers will still go bankrupt. IMO it's a very weak 'bail out' that will be ineffectual, I will eat my hat if JLR suddenly announce they will produce 10,000 more cars as a result!

Lotus-eater

Graham_Devon wrote: »

Probably already been said, but I don't know how this is going to get people buying cars. Effectively what it's doing is bailing them out so they can continue producing cars and taking over more fields as car lots.

We'll have thousands of unbought cars soon, and new models will be leaving the factories.

This reminds me of the video game boom during the 80's. Way too many Atari carts were produced, when the market collapsed, hundreds of thousands were buried in the New mexico desert as they could not be sold at any price.
Although I can't see cars being stuck under the ground, they will have to do something with them.

I see Germany is giving 2000 euros to scrap any car over 10 years old, to try and create a demand for new cars, I suspect something similar will be introduced over here after this loan guarantee fails.

Graham_Devon

Lotus-eater wrote: »

This reminds me of the video game boom during the 80's. Way too many Atari carts were produced, when the market collapsed, hundreds of thousands were buried in the New mexico desert as they could not be sold at any price.
Although I can't see cars being stuck under the ground, they will have to do something with them.

I see Germany is giving 2000 euros to scrap any car over 10 years old, to try and create a demand for new cars, I suspect something similar will be introduced over here after this loan guarantee fails.

Thats what I said earlier.

Some new legislation will be bought in to force us into buying if we don't buy ourselves, thats pretty much a given. Anything to save face of the government. Let's face it, the ONE single reason they are doing this is because most of the production and jobs are in key labour areas.

Woolworths was all over the country, these are key seats where car production happens.

Lotus-eater

Graham_Devon wrote: »

Thats what I said earlier.

What do you want, a medal?


I've been thinking about this since last night. About 70% of new cars are bought by businesses, most won't want to buy atm, but some will be secure enough to buy at this time....for the right price. So companies with huge fleets will buy up the unwanted models for vast discounts, maybe at less than cost price.

This will all remain secret while we as the std consumer will be given modest discounts.

Is this realistic?

Sir_Humphrey

I don't see who was saying that potential borrowers would have a bad credit rating. In any case, the govt aid does not include any loans or vouchers as it turns out. As a result Ken 'do no wrong according to MSE'ers' Clarke says it does not go far enough.

kennyboy66_2

Graham_Devon wrote: »

Thats what I said earlier.

Some new legislation will be bought in to force us into buying if we don't buy ourselves, thats pretty much a given. Anything to save face of the government. Let's face it, the ONE single reason they are doing this is because most of the production and jobs are in key labour areas.

Woolworths was all over the country, these are key seats where car production happens.

Woolworths are mainly low skilled jobs, easily re-created if demand picked up by other retailers.
Car industry jobs are mainly higher skilled jobs that once gone if a plant closes are almost certainly gone forever.