Car Scrappage just announced [MERGED]

johnjp

As soon as a new car leaves the forecourt it will be worth 20% less, unless it becomes a collectors item e.g. the `Mini One`.
If my maths is right that means one would have to buy a car costing more than 10,000 to even begin to be quids in. Only a mug would buy a new car on HP as this would add even more cost to the purchase.
On the economy side, I see most people speeding away from traffic lights and junctions, like it`s a race - and using up expensive petrol very quickly. I cruise off, trying to keep the revs lower than 2500rpm, it`s not long before I catch up with the speedsters anyway!

Lemonade_Pockets

I'd be interested to see how your maths work. As using your magic 20% figure i would say the car would have to be under £5k for you to be quids in???

buglawton

When the German mnfrs pressurised the German govt to triple the scrappage budget since 1st tranche was all spent, they used the argument that the VAT collected practically cancels out the subsidy - cars that would otherwise have never been sold, so never produced VAT receipts anyway. Persuasivee argument for such schemes in a recession?

Lemonade_Pockets

I had the impression that Ms Merkel and Co. Chose to extend the scheme because they have a election coming up???

I still think its overkill and if you asked the MFR's i think they'd agree. I know the relevant directors of the respective companies are acutely aware of the potential hangover that the german market is going to have. But its difficult for them to sit back, if its up for grabs they have to take a slice of the pie - not doing so would probably be the worse of two evils.

tomstickland

Whilst I could afford some brand new cars outright, I've never seen the need to own one, so run around in old cars. Laughing all the way to the bank as it were. If I were to buy a newer one I'd made sure that it was at least 2 years old so it had fallen down the depreciation curve by a decent amount.

Andreg

richardw wrote: »

Initial thought was I could get £2000 off a £6000 car, that's 33% off.
But the £6000 already includes the manufacturer's £1000 and my car is worth £500, so I'm getting £500 off a £6000 car, down from 33% to 8.33%.
So the benefit reduces by nearly 25% when looking at the detail.

Good analysis. But I wonder who will get the scrap value of the car? The car will definitely have to be scrapped (the budget statement is pretty clear on that), but if the dealer can get a few hundred from the breakers they should be willing to pass that on as discount.

richardw

Depends if the govenment wants to see the breaker paperwork that the dealer gets.

DebtHater

sheslookinhot wrote: »

What a waste of taxpayers money.

Welcome to England!

eslick

Hi All

Did a search and couldnt see this, it was on the radion that Nissan are trying to get on the bandwagon and having a "scrappage" for cars from 8 years and not 10. They wont scrap them but will effectively guarantee the minimum trade in value.

http://www.nissan-offers.co.uk/

Hintza

Just shows how poor the deal is is in reality. So you should be able to walk into a dealer without a trade in and get the same deal (or very close to it).

Good ploy by Nissan.