Budget row over 2K payout to scrap a car

cookie_monster

The way this economy is going I think quite alot of people will be looking to change their fairly new car for one thats over 10 years old.

SingleSue

They can always have mine...for a price of course!:D

heffsta

Graham_Devon wrote: »

Only new I think. Though hopefully proper details will come out soon.

Did other countries do "up to a year old"? If so, it's possible that this one might. But they only said new cars.

Im pretty sure other countries had it for cars up to a year old. Im really hoping so as I need a replacement car anyways and mine is 11 years old.

bo_drinker

Are there enough folk out there that gullible to be taken in by this nonsense just to try and save the motor industry ?? Darling must think so

Really2

heffsta wrote: »

Im pretty sure other countries had it for cars up to a year old. Im really hoping so as I need a replacement car anyways and mine is 11 years old.

As far as I know the gream sceme was on new registrations only.

It kind of goes aginst the point of doing it on nearly new cars as it is to boost the sales of new cars.

ruggedtoast

I can see why countries that have have a car industry would want to do this but I cant see why we do.

Apparently only 14% of cars built here are sold here so I cant even see what benefit this will have to keeping jobs in Britain.

Seems rather more like an attempt to bribe foreign manufacturers into not laying off any more plucky Brits in exchange for us subsidising their products, the majority of the profits of which go abroad.

Interesting.

Edale

Just looked at the full budget report and it states:

4.16 To give a boost to the car industry during the current downturn, the Government
announces the introduction of a vehicle scrappage scheme. A discount of £2,000 will be
offered to consumers buying a new vehicle to replace a vehicle more than ten years old which
they have owned for more than twelve months. The Government will set aside £300 million for
this scheme with funding matched by manufacturers participating in the scheme. The
Government will work with industry to introduce the scheme next month. The scheme will

end by the start of March 2010, or when funding for the scheme has been used if earlier.

So you have to have owned the vehicle for a year. I do wonder how many people with a car over 10 years old are able or want to buy a new car. I think this is a sop to the motor industry and Mandy and will make little difference.

Old_Slaphead

New an nearly new car prices have been holding up in anticipation of this scheme (most manufacturers have increased new prices in last few months).....so it won't be the "bargain" for older car owners that, at first sight, iit appears to be.

Presumably, 2 or 3 year old car prices will come down with reduced demand.

JayScottGreenspan

The only way this can help the car industry is if someone who wouldn't otherwise have bought a new car decides that, on the back of this, they will.

The problem is that virtually none of the manufacturers are British firms and, more importantly, 85% of cars sold in the UK are imported. So most are not even made by British workers.

So those punters who suddenly decides to fork out large on a new motor will have the following effect:
* Large amount of cash goes abroad to foreign owned companies with foreign factories.
* That cash would otherwise have circulated within the British economy.

So it will cost money, provide little benefit to people working in car factories in the UK, and will usher disposable income out of the UK.

On the other hand, Mandelson gets to look like "the man" and talk about how he is some sort of industrial saviour.

Oh dear.

Old_Slaphead

JayScottGreenspan wrote: »

On the other hand, Mandelson gets to look like "the man" and talk about how he is some sort of industrial saviour.

Oh dear.

I've just 2 words to say of that man - "Millenium" and "Dome". That to me about sums up his business acumen.