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Sales of new German cars jumped by almost a quarter
Comments
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So could they not restrict it it on UK built models? (or would we get accused of protectionism?)
Yep, that would be an undeniably protectionist move and sure to contravene EU regulations.
OTOH, there should be an undeniable incentive to buy British since the pound fell. A Jag ought to be a lot cheaper than an equivalent BMW right now, but without researching it I don't know if that is actually the case.0 -
kennyboy66 wrote: »Except that the UK manufacturers significantly more cars than Belgium (or Italy for that matter).
That's why I said using the top ten! I do actually know a bit about the car industry...
How many of the c. 1.5-2million cars (that used to be) produced in the UK go for export? Land Rover total annual sales were around 250,000 (2007/8) of that only around 15,000 were sold in the UK. Honda produced around 250,000 from its UK plant, last year it sold around 35,000 cars in the UK.
That top ten is a very good indicator of what will be bought if a £2000 discount went ahead and is therefore a very good indicator of the countries that will really benefit. British workers (apart from salesmen) won't benefit that much, the Germans and Spanish really will."One thing that is different, and has changed here, is the self-absorption, not just greed. Everybody is in a hurry now and there is a 'the rules don't apply to me' sort of thing." - Bill Bryson0 -
Still wouldn't make it worth doing - just traded my 9 year old car in for a 3 year old (20k on the clock so less than typical mileage) at a net cost of £6k. I'll get 6 years out of that car so costs around £1k per year.
If I'd gone for the same car brand new and had £2k off the current price for scrappage the net cost would have been £15k and I'd have got 9 years out of it so £1650 per year. Still not worth it.
The reality is that the car market is skewed by the fleet buyers - private buyers pay high prices to subsidise the fleet prices which in turn enables the fleets to dump their cars cheaply on the second hand market, thereby devaluing the private buyers car when he/she trades it in. The big cut back in volume has been the fleet sector which means in 3 years time there will be a shortage of ex fleet cars on the second hand market and new sales will have to rise to compensate. In theory therefore by having reduced sales now, private (inflated) sales in 3 years time will be higher - so why use government money to try to shift what is largely only a timing issue?
The real solution is for the makers to cut their prices to private buyers so the fleet distortion doesn't have as big an impact - at that point people won't expect new cars to depreciate off a cliff in the first year and will be willing to buy. At the moment we all know new private sale cars are a rip off and that's why we aren't buying!Adventure before Dementia!0 -
Sales of new German cars jumped by almost a quarter in February, as a cash bonus for scrapping old cars encouraged consumers to buy new ones.
Maybe it may work in the UK and save 10000's jobs in various automotive industries.
But of course, the doomsters on here will want to 'p1ss on the matches'.
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WestonDave wrote: »Still wouldn't make it worth doing - just traded my 9 year old car in for a 3 year old (20k on the clock so less than typical mileage) at a net cost of £6k. I'll get 6 years out of that car so costs around £1k per year.
If I'd gone for the same car brand new and had £2k off the current price for scrappage the net cost would have been £15k and I'd have got 9 years out of it so £1650 per year. Still not worth it.
I sort of agree with you economic argument (I generally buy used cars myself), but I think you're overstating it to compare that £1650 per year and £1000 per year as if they were for the same thing. You would, after all, have had the bonus of driving around in a shiny new car for the £1650pa, and as it ages the certainty that it hasn't been mistreated (always a risk when buying used).0 -
I just don't see it working - even if people have the cash and security to buy a new car we don't make many small cars in the UK - Mini and Nissan Micra?
We have a brilliant car manufacturing industry running world-beating efficient plants. Its majority export so has a hugely beneficial effect not just in the areas where the factories are but to the UK as a whole.
So do we subsidise it and keep them open until Europe starts buying cars again? Or do we let them go to the wall and add car manufacture to all the other heavy industries we let the "free market" scrap?0 -
agent_orange wrote: »
Maybe it may work in the UK and save 10000's jobs in various automotive industries.
But of course, the doomsters on here will want to 'p1ss on the matches'.
Having a concern as to how effective an idea is is the same as wanting to 'p1ss on the matches'?!!
I really don't agree with this idea, as I don't think the UK is in a position where it will be effective. I also question using taxpayers money, our money, to subsidise a new car for someone who owns a perfectly reasonable car. I also don't think that mindless consumerism is the way out of a crisis caused by mindless consumerism, or that it is environmentally positive. So, a typical Labour idea really."I'm not even supposed to be here today."0 -
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