Budget row over 2K payout to scrap a car

Former_Spice

For a money saving forum, I'm, shocked that no-one has seen the flaw/loophole in this.

Those that can afford a new car will buy the cheapest rustbucket they can find, then get the 2K for it.

Millionaire

Former_Spice wrote: »

For a money saving forum, I'm, shocked that no-one has seen the flaw/loophole in this.

Those that can afford a new car will buy the cheapest rustbucket they can find, then get the 2K for it.

I was going to post this yesterday actually:D, but couldn't be bothered. Thats what anyone buying a new car should do if this scheme is introduced.

Also as someone posted earlier, Just because someone is driving around a banger does not mean they cannot financial afford a new car.

Same goes for someone that has a new car, doesn't mean they are financially "well off" or can afford it.

Alybea

That was my thought, surely people who have the ££ to buy the new car will buy a £150 rust bucket just for the £2k discount then trade in their other car too?

Will it skew car prices? will a 10 year old rust bucket be worth more than an 8 year old well kept car?

Will the voucher apply to all cars? Will there be a mininmum cost? Could you effectivly get almost a 1/3rd off a C1?

(sorry lots of questions.)

Graham_Devon

Former_Spice wrote: »

For a money saving forum, I'm, shocked that no-one has seen the flaw/loophole in this.

Those that can afford a new car will buy the cheapest rustbucket they can find, then get the 2K for it.

They have to have owned it for over a year.

Jennifer_Jane

Oh, I'm waiting for this to come in. I don't have money now, but will do in September and will be buying a newish car then. This might mean that I buy a brand-new rather than the nearly new I'd planned on (depending on what is good value and discounted at the time). They can then have my 11-year old rustbucket.

Am not worried about losing the job as I'm retiring in September. I hope that dealers have not increased their prices and that there still are bargains to be had (along with the Government voucher). I would love to have a shiny brand new car rather than something 1 or 2 years old, but I realise that this is not good practice. So the voucher may certainly encourage me to go for brand-new.

The German thing was, however, for the first 3 months or so, so hope that the deal is still available when I do have the available money.

Yummy!

Jen
x

CFC

I'd go for it. My cars still drive perfectly and don't cost a lot in repairs, but I know that at some point in the next 2-3 years I'd need to replace the second car, probably by downgrading the main car to 2nd and then buying something newer.
Problem is that I suspect that all that would happen is that the 2k would subsidise dealer's profits, same as has happened with the VAT cut.

Millionaire

Graham_Devon wrote: »

They have to have owned it for over a year.

Bummer, also I heard that it does not have to be a brand new car, it can be upto a year old so therefore some depreciation of the first year would have been knocked off.

mbga9pgf

Millionaire wrote: »

Bummer, also I heard that it does not have to be a brand new car, it can be upto a year old so therefore some depreciation of the first year would have been knocked off.

You are all forgetting that this offer will be extended to cars bought from main dealer that are also nearly new -IE 1 year old and have thus had the showroom price knocked off;

I am certainly looking to upgrade if this comes in, but only towards the back end of the Financial year. Why bother scrapping a car that is currently running fine when the government have effectively given me a 1 year insurance policy against breakdown of what could be described as an old and soon to be not very reliable car? :rotfl: :rotfl: :rotfl: Cheers Gordon.

with a 2K discount, if my car breaks down, I am looking at a 1 year old passat estate with 15K on the clock, Diesel, cruise control for around 9K. brand new, you are looking at the best part of £17,000. That is a real bargain in my view. Just not looking forward to increased insurance, although my current car, (VW Polo diesel) even though it has lower emmissions than the above 2 litre passatt, has road tax that costs me 285 quid this year!

The equivalent "modern" car with similar emmissions costs less than half of this for 1 years road tax! :mad:

mewbie_2

It's headline attempting nonsense. Like the VAT cut - smoke and mirrors. Not to mention the coming increase in N.I.

Simple way to help people? Stop taxing them to death. Stop bleeding businesses through hundreds of expensive to administer rules and stealth taxes.

In short - simplify taxation - make it more obvious, fairer and slightly cheaper.

Want to save money Mr. Brown? Resign and call an election.

loofer

Are we getting 1 step closer to this actually happening?
http://news.bbc.co.uk/1/hi/business/7995928.stm
The Govt. are better off making the decision either way. Leaving it on a cliff edge could add to the problem as there may by 9yr old car owners out there looking to buy (nearly)new car at some point soon regardless of this incentive being introduced. They're just holding out longer to find out.