Budget row over 2K payout to scrap a car

lostinrates

Graham_Devon wrote: »

Well looking at the above 2 posters, then yes, it does have some appeal.
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I'm playing devil's advocate with myself. I love my car. Shouldn't have spend so much repairing it really. Need to replace, its worth me considering options. I probably will o for aused car: if I cn find one. I've never bought a car from new, this one was six months or something old, and a good price.

Graham_Devon

Chris_Howarth wrote: »

There's a definite conflict of interest here between reviving the economy and protecting the environment. Although I don't have any evidence to hand, it's widely accepted that the pollution generated by an average car during its lifetime is magnitudes less than that produced during its manufacture (if you include the mining of raw materials, manufacturing of parts, assembly, transportation etc...).

I own a 1998 Renault Megane, it's a practical workhorse and I can service it and fix it myself - I choose to spend my money on other things. I do about 20K miles a year and it returns 40mpg. I reckon it's got another 5-6 years of life left in it, so why are the Government providing me with an incentive to scrap a perfectly serviceable vehicle prematurely, before the end of its working life?

Yes, the latest cars may well be more fuel efficient, but offset that against the energy that is required to design, build and sell these new cars and it becomes apparent that, from an environmental perspective at least, the new scheme just doesn't make sense - especially as we're being warned that fossil fuel reserves are running low and that we should be conserving energy wherever possible.

It's all too easy to be a critic, indeed I don't have any answers to the current economic problems myself, but this just smacks of being a rushed, half-baked idea, conjured-up without any consideration to the wider and long-term implications.

Chris

This isn't a green thing, even the green groups seem to be against it, apart from friends of te earth, who see it only in a CO2 emitted when driving point of view.

It's a bit like we have all been told to use low energy light bulbs, but then they go fire up a coal powered power station to run them.

sabretoothtigger

£2,000 Scrappage Scheme from 15 May - Order NOW! Click HERE >>

PRE-REGISTERED NEW CARS DO NOT QUALIFY FOR THIS SCHEME

GOVERNMENT INTRODUCES INCENTIVE FOR MOTORISTS TO ‘SCRAP’ OLD CARS AND VANS

Motorists are being offered £2,000 towards a new car or van if they trade in their 10-year-old, or older, vehicle for scrap under plans unveiled by the Government in today’s Budget.

The decision to implement a scrappage scheme has been taken after careful consideration of car industry proposals, lessons learnt from European schemes as well as concerns raised about the impact of such a scheme on other sectors of the economy.

The UK scheme, with £300m from Government and matched funding from industry, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain in the wake of falling sales. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.

Business Secretary Lord Mandelson said:

"This is targeted action with a capped budget and for a limited time, designed to boost the whole motor trade. This will ensure that the benefits of a scrappage scheme are balanced with the needs of other sectors of the car industry such as the second hand market, maintenance and repair businesses, and other industries that produce consumer durables or on the taxpayer.

"The car sector is under huge pressure at the moment and the government is determined it remains a very important part of our manufacturing base. It invests heavily in research and development, supports highly skilled workers and a wider supply chain. These are vital to our future manufacturing and retail success."

The scheme will be run by automotive manufacturers who wish to participate. It is expected to be operational from mid-May to allow industry time to prepare. There will be proper verification procedures to ensure the rules are followed, including audits by DVLA to avoid abuse that has been encountered in other countries.

Business Minister Ian Pearson said:

"People will not only save hard-earned cash on buying a new car or a van for their business but they will know they are helping save jobs too.

"If you’ve got a vehicle that’s ten years old or more, you just need to talk to a participating dealer who will do the rest. You will get at least £2,000 towards a new one."

GENERAL CONDITIONS

1. The £2,000 grant is made up of £1,000 from government with matched funding from industry. The scheme will operate from mid-May until March 2010 or until the government funding has been used.

2. It applies to commercial vans (up to 3.5 tonnes) as well as cars that are 10 years old or older.

3. The scheme is a voluntary scheme so not all manufacturers or dealers may participate.

4. How to apply: The dealers will do all the paperwork for motorists participating in the scheme and arrange for the old vehicle to be scrapped. The dealer will check that the vehicle being traded in and the new one being bought qualify under the scheme:-

OLD VEHICLE CONDITIONS

Passenger car or small van up to 3.5 tonnes
First registered in United Kingdom on or before 31 July 1999
Currently registered with DVLA to the registered keeper making the application, or currently on Statutory Off Road Notification (SORN)
Current MOT test certificate
Registered Keeper must have a UK address
The registered keeper has been the registered keeper of the vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle

NEW VEHICLE CONDITIONS

Passenger car or small van up to 3.5 tonnes
First registered in the UK or after the date the scrappage scheme is launched and declared new at first registration in the UK with no former keepers
UK specification vehicle
Registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped

Graham_Devon

lostinrates wrote: »

I'm playing devil's advocate with myself. I love my car. Shouldn't have spend so much repairing it really. Need to replace, its worth me considering options. I probably will o for aused car: if I cn find one. I've never bought a car from new, this one was six months or something old, and a good price.

I honestly would buy second hand. Apart from the fact you have got a brand new car, your the only one to ever own it, I cannot see any other viable reason for buying a brand new car.

There is so much choice on the market, and say you were going to spend 8k. You would get a hell of a lot more car for 8k, at just one year old with say 10k on the clock, than you will for 8k in the showroom.

Sabre...that doesnt say anywhere that broadspeed are going to be offering it. It even says the dealers will do your paperwork. Broadspeed is not a dealer, they are in effect a broker who buy cars en masse to drive down the prices. It would definately be a good thing if they do offer it, I just don't see how they can, as they, and the dealer, would be making huge losses.

treliac

I would still go for a not brand new car, especially if seconds are getting to be better bargains.

I do a fair bit of driving and, after years of older cars, needed the reliability of something newer. Took a 1 yr old Nissan 3 years ago on a loan and will probably trade in for something similar in a couple more years.

That way, barring the unfortunate, I know what my outgoings are going to be and shouldn't reach the sudden shock of having something major go.

Graham_Devon

treliac wrote: »

I would still go for a not brand new car, especially if seconds are getting to be better bargains.

I do a fair bit of driving and, after years of older cars, needed the reliability of something newer. Took a 1 yr old Nissan 3 years ago on a loan and will probably trade in for something similar in a couple more years.

That way, barring the unfortunate, I know what my outgoings are going to be and shouldn't reach the sudden shock of having something major go.

Apart from one car, I've always bought 3 year old ex company leases. The one car I did buy practically brand new (less than 1000 on the clock) had so many teething problems the dealers had it more than me. Sure, it was under warranty, but that doesnt help when 'm left without a car for a day while they are carrying out a warranty job.

All of my ex company leases have been, touch wood, up till now, brilliant. Have always had higher mileage, but I've always gone for the "better" cars by saving on the cost by buying ex lease. Plus, they have impecable service history.

Normally these have sat on the motorway all their lives anyway, and I always go for one thats just had its major service at 60k.

The one I have now, I have had for a year, it's now 4 years old, just under 90k, bought it at 67k, and it's not asked anything of me yet. Normally keep them for a couple of years

bo_drinker

They usually do motorway work which is best even if the miles are higher, not up and down the box, start stop all the time.

lostinrates

treliac wrote: »

I would still go for a not brand new car, especially if seconds are getting to be better bargains.

I do a fair bit of driving and, after years of older cars, needed the reliability of something newer. Took a 1 yr old Nissan 3 years ago on a loan and will probably trade in for something similar in a couple more years.

That way, barring the unfortunate, I know what my outgoings are going to be and shouldn't reach the sudden shock of having something major go.

I quite like the idea of leasing, but not sure how it would work with taking dogs in the car etc. I dont pretne d to myself its money saving, but it might be peace of mind. I've never done anything like it, nor bought ''on tick'' so I feel a little concerned about it. I suppose though its more like renting a house, take care of it and all is fine?

Arcaine

Am saving for a new car, mine is more than 10 years old, no way I can afford a new one even with the 2k without getting myself into a lot of debt. I think a great deal of people will be in the same boat. If they think this is going to "save" the car industry they can think again.

hethmar

How disappointing - OH has held on to his BMW Cabriolet virtually from new (1986) and its only been used for a few hundred miles a year in the last 10 years, as a second car - Id finally persuaded him that the scrappage would be the time to get shot of it (it will break his heart, but we have to be practical) but we had also thought that it wouldnt just be brand new cars on offer. Theres no point, on the net you can get £2k or more off a new car anyway.