Budget row over 2K payout to scrap a car

misskool

Typical government blustering. It's always about the headline news and nothing that has been thought through that will trickle to the people that will need them.

It's be useful for a small slice of the population but not for stimulating an entire section of industry.

shuze

Graham_Devon wrote: »

I have just seen something I didn't know. You will get a certficate, which you can give to any main dealer and buy a new car or one under one year old.

What could work, is using this certificate to buy any car under 3 years old. You could then go to car supermarkets in this country and use your 2k there. Thousands more could then use the scheme, and the money would be kept in the UK, instead of going to france, germany, russia etc.

Theres probably a thousand problems associated with that though that I haven't thought of!

Personally though, I think using it for cars up to 3 years old, would do wonders for getting this money circulating around the UK. Not sure if it would actually be needed though, I'm just thinking of the best use of the money should it go ahead.

Not sure about the detail, but I thought the whole point was to get the new car production lines running again? I can't help feeling that this whole idea is more about headlines than substance.

mizzbiz

The trouble is, the speed at which new cars depreciate wipes that 2k out as soon as you drive it off the forecourt. This is what puts an awful lot of people off buying brand new cars. Add to that that most people require finance to buy a new car, at interest and under constant threat of reposession, and this 2k doesn't look like it's worth anything at all to the general public.

I also agree that even if you have the money, you are looking to build a safety net as things are not going well in the short term. Everytime you think of buying something, you look at it and think ...how will I feel if I lose my job next month and instead of putting my money away I have this stupid 09 plate Renault Clio which will probably get reposessed anyway. Madness.

bo_drinker

mizzbiz wrote: »

The trouble is, the speed at which new cars depreciate wipes that 2k out as soon as you drive it off the forecourt. This is what puts an awful lot of people off buying brand new cars. Add to that that most people require finance to buy a new car, at interest and under constant threat of reposession, and this 2k doesn't look like it's worth anything at all to the general public.

I also agree that even if you have the money, you are looking to build a safety net as things are not going well in the short term. Everytime you think of buying something, you look at it and think ...how will I feel if I lose my job next month and instead of putting my money away I have this stupid 09 plate Renault Clio which will probably get reposessed anyway. Madness.

Powers that be don't look at things like Joe public, that has always been the problem. Their in a different world virtually untouched by the recession. And too busy with noses in troughs the rest of us can't get a look in

Graham_Devon

bo_drinker wrote: »

Powers that be don't look at things like Joe public, that has always been the problem. Their in a different world virtually untouched by the recession. And too busy with noses in troughs the rest of us can't get a look in

This has a lot to play I think.

Mandleson will see the 5k needed on top of the 2k to buy a new car as small change. They have absolutely no idea about the real world.

What would be very good is doing some kind of back to the floor exercise. Put a few of the ministers into the shoes of the average family for 2 weeks. A bit like that secret millionaire programme, but not as harsh as thats not average.

I'm sure when they are earning 20k a year and having to actually pay for their homes they will find things different and maybe even plan things differently.

I've always thought it would be good to have a panel of say 50 members of the general public, from different areas of the country, average earners, part of the decision making process. This of course, will never happen. But would certainly give the best feedback they could ever get.

dylansmum

Rochdale_Pioneers wrote: »

They are targeting the wrong end of the market - if you have a 9 year old car you're unlikely to be in the market for a new one.

Two problems with the car market at the moment - unemployment and fear thereof, and lack of credit. Offer to guarantee manufacturer finance deals at 0% and things might get moving.

I agree. Our car is almost 9 years old - it is ok but a bit worn. We would be able to afford a newer car if we save up (but not a priority for us - savings going to go on paying off mortgage). But most people running old cars are doing so because they can't afford a new one (us a year ago - doubt 2000 quid would do much for most! And yes, the finance deals are huge on lots of cars - not all - but on many.

bo_drinker

I have noticed a lot of the smaller s/h car dealers around here are trading in cheaper cars than they were a year or two back. Clean and tidy cars under 5K many under 3, a sign of the times

beingjdc

This would be a great way to send a load more of the UK's money overseas, and make lots of mechanics redundant in the process... not that I'm bitter as someone who stopped driving four years ago anyway!

djm1972

I just posted about this over on HPC. I agree that most people who run 10 year old cars aren't in the market for a new, but for me it couldn't have come at a better time as I subscribe to the buy new and run it into the ground philosophy.

I'm now looking for a new car, and if I can get a £2500 bounty for my 1998 rover so much the better - but i'd keep quiet about the fact and negotiate based on being a cash buyer...!

tomstickland

I run old cars because I want to.