Car Scrappage just announced [MERGED]

buglawton

Lemonade_Pockets wrote: »

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.

Actually, German Govt wanted to continue the scheme at 50% of the previous per car subsidy but were heavily leant on by the MNFRs. VW and Fiat benefited hugely, with VW re-opening some production lines on smaller vehicles. Interestingly, it's the European MNFRs that have gained experience in the German market who are already advertising via Google ads to the UK punter now, against the keyword 'scrappage'.

So it looks like UK Nissan, Toyota and Mini production lines will stay firmly closed while the Euro MNFRs move smoothly in to take up the new UK scrappage market.

chigley

Well I am not tempted to trade in my 13 year old Disco, nor my two other cars (which are 45 and 52 years old). I reckon the only winner again will be the Government, as if you take a new car at an average price of £10,000 then include VAT in that price, then the Government will actually end up being £500 better off :rolleyes:

DealDrivers_company_representative

Yes, whilst it will mean the mfr/dealer have to find £1000 from somewhere if a customer wants to use the scheme, the vat taken on the sales which is then returned to the govt means the govt will break even on about anything sold over £7k.
Not quite a fair split and one of the reason why many mfrs are - this morning- on the fence about participating (some may not, others may only operate the scheme on specific models where they can work out a way to afford to, with their already beleagured dealer network who needed a way to make money, not spend it).

Lemonade_Pockets

buglawton wrote: »

Actually, German Govt wanted to continue the scheme at 50% of the previous per car subsidy but were heavily leant on by the MNFRs.

Have you got any links to this i'd be interested to read up on it.

I get a stream of press coverage at work, i must admit i haven't read it all but as mentioned i had the impression that it was the looming election rather than the MFR's that had been the key.

roswell

Lemonade_Pockets wrote: »

Yeah but germany have gone too far the other way. In a ideal world this would stimulate demand back to "normal" levels then by the time the scheme finishes the economy has back on the up and "normal" demand will be there with or without the scrappage allowance.

What Germany are in very real danger of doing is selling far too many cars now then having a massive decline when they stop the scheme. They've already had to extend the budget for it and will now "spend" almost 5bn.

France is a much better indicator they have a €1000 allowance and sales are up 7% irrc, a much more balanced scheme.

The reason our government hasn't put strict emission regulations on our scrappage scheme is because most of the cars MFR'd in this country wouldn't meet the same criteria as Germanys scheme.

Exactly my thoughts even if people do take the offer up its only demand for this year what will they do next year ?? they cant have us buying new cars every. short term fix to a long term problem,

Reality is the manufactures upped production to meet the credit boom now they have to restrict producting to normal / less than normal demand that is the whole problem in a nutshell.

A 10 year old car if still on the road with a valid MOT is in most case`s not ready to be scrapped and still service able. those that were lemons would have died before 10 years and already be on the scrap heap.

The other risk is the loss of future classics.

smiffy

So if you are in the market for a new small car and have a 10yr car. What is the cheapest vehicle that anyone has spotted on the scheme?

In the paper today a Panda 1.1 Active is available for £4995.

Thanks

DealDrivers_company_representative

You can't guage prices yet as dealers and manuf'rs have yet to opt in to the scheme (some may not) and decide on pricing for the new cars in instances where a drivers wants to take £2k scrap allowance...as they have to work out where to find the £1k they have to stump up themselves for each one.
No pricing will come out yet...due to start mid May as it will take that long for processes to be agreed and each brand to decide on revised pricing.

buglawton

Lemonade_Pockets wrote: »

Have you got any links to this i'd be interested to read up on it.

I get a stream of press coverage at work, i must admit i haven't read it all but as mentioned i had the impression that it was the looming election rather than the MFR's that had been the key.

http://www.guardian.co.uk/business/2009/apr/06/scrappage-boosts-german-car-sales

key paragraph mentions German govt backtracking on halving the incentive after opposition from VDIK (who are a German motor manfr assoc)

So now the German scheme has been expanded to a budget ( €4-5bn) approx eight times the size of the £700m that UK govt is limiting it's scheme to.

Time for Nissan & Toyota to get out of the UK permanently?

roswell

Nissan are produced in the UK take them out and watch the north east crumble like the mining days.

4444405

ok then...I have a R Reg 1998 Ford Ka with airline mileage, owned in my name for 3 years, has tax until Oct09 and an Mot through till Feb2010. However my silly son has crashed it in a park against a concrete post and has ripped the front wheel off. The car has been on my drive looking very sorry for a good month now and I have been putting off getting it scrapped...due to laziness! It is currently undrivable and I am potentially tempted to take advantage of this offer. I have just looked on the Ford website and they are taking part in the scrappage scheme...however they quote that their Ka and Fiesta prices start at over 9,500 pounds!
Has anyone seen the a manufacturer advertising anything nearer half that, that are also going to use the government scheme?