Car Scrappage just announced [MERGED]

Lemonade_Pockets

N.b If someone can find me a MFR or dealer that makes more than £1000 ppu net profit after tax on Volume new car sales.
Then i'll eat some humble pie and take it all back and add my name to the robbing b*stard fraternity.

Lemonade_Pockets

Ling you can't just cherry pick from all the offers that are out there and make your own ideal package.

I suppose you'd like 0% finance on that £3999 too.

The scheme is only being touted as £2000 scrappage incentive because thats what our dimwit goverment have announced it as.

If the goverment had simply said its a £1000 incentive then the MFR's would refer to it as such.

The only new cash in this whole equation is the £1000 the government are injecting therfore why you think anything else should or would change is completely beyond me

Ling_Valentine

This has got nothing to do with net profits of massive corporations.

It has got everything to do with stimulating demand (by consumers) to buy new cars.

Manufacturers can join, or can choose not to join. It is a free choice. I think if they join, they should offer the agreed subsidy to the typical transaction price, not withhold £1000 of it and just wave in the happy UK taxpayer to spend our £1000 on their behalf (while contributing not one penny more, themselves).

Note that this is costing FIAT not one Euro in additional support, while the Italian motor industry benefits from extra sales created by £1000 of taxpayer money per car. Can that be right?

Lemonade_Pockets

It has got everything to do with stimulating demand (by consumers) to buy new cars

Don't disagree for one second, but why are we really stimulating demand??? answer to bail out the Industry inparticular MFR's, BINGO!!!!!

Manufacturers can join, or can choose not to join. It is a free choice. I think if they join, they should offer the agreed subsidy to the typical transaction price, not withhold £1000 of it and just wave in the happy UK taxpayer to spend our £1000 on their behalf (while contributing not one penny more, themselves).

Please see previous posts. Demanding that they make a loss on these transactions is completely counter productive to what the scheme is trying to acheive.

Note that this is costing FIAT not one Euro in additional support, while the Italian motor industry benefits from extra sales created by £1000 of taxpayer money per car. Can that be right?

My god, yes but the italians have their own scheme which benefits other contries like france. Guess what France have a scheme too which benefits lots of other countries like germany, Guess what germany have their own scheme too which benefits lots of other countries like the uk...............Do i need to go on.

We live in a world economy at the very least the EU economy it is illegal for protectionist measures to be enforced by the Government just ask the French PM what happened when he tried it.

loofer

well as much as we quite hate the adjusted discounts, the scheme simply accommodates for £2000 to be knocked off the list price.

MFR's/Dealerships will take advantage of this (rightfully or wrongfully depending on how you see it) and offer you the £2k off their list price by withdrawing/re-hashing any previous discounts.

There was nothing to say it has to be £2k off their last offered price. MFRs are working within the remit of this scheme ... they are a business after all

mikey72

Ling_Valentine wrote: »

The Fiat Panda at £5999 (no scrappage offer) is an invitation to purchase by FIAT.

The scheme is being touted as a £2,000 subsidy to consumers. It is NOT being touted as a £1,000 scheme.

Therefore, if the car is not available at £3999 after scrappage, then I believe the consumer is being misled under the Consumer Protection from Unfair Trading Legislation 2008.

A commercial practice is unfair if it is unacceptable when measured against an objective standard (claiming a £2000 subsidy but it only being £1000 subsidy on the typical transaction value), and it has an effect on the economic behaviour of an average consumer (ie entering into a negotiation over buying a new car after imagining that £2000 subsidy actually meant £2000).

As with all offers, the website has both a scrappage and non scrappage price, and clearly states you can't use more than one offer in the terms and conditions of the non scrappage.
What's unfair about that?

nomoneytoday

It's all a con anyway. The "deals" simply change to include the scrappage instead of a minimum px price, or discount from list.

Then the government get their £1000 back on all cars over around £7000 in price in VAT anyway.

Net cost to government = minimal
Additional cost to car manufacturer = minimal

However, a load of new cars get sold so salespersons earn their commission again. They can then go an buy a shiny suit and some hairgel, thus paying VAT plus wages in the shop and the whole economic cycle starts again

nomoneytoday

Indout96 wrote: »

But on the good side you wont be killing your kids with the carcinogens diesel throws out in the atmosphere

Unleaded fuel isn't exactly fantastic either... When lead was taken out of petrol the chemicals used to replace it don't have a fantastic track record...

For example:

http://www.independent.co.uk/environment/leadfree-petrol-may-be-villain-in-mystery-of-demise-of-the-worlds-most-familiar-bird-698469.html

Lemonade_Pockets

Yes there is a God, i was beggining to lose the will to live. It seems there are people out there who understand the bigger picture.

Will it work long term who know's, but its been fun arguing about it in the mean time

DealDrivers_company_representative

Ling...Lemonade P' is talking absolute sense.
You are making sweeping statements without, perhaps, understanding the current structure of some brand's pricing and dealer-manufacturer relationship & margins....and not least, how this was presented to the manufacturers without sufficient consultation.

I think a sensible thing to do would be to not 'raise the roof' with some innaccuracies in your current thinking, but wait until all mfr's have been able to assess figures and impact, and talk to their dealer networks about how to manage this and where a loss will be infeasible to accept, and agree a Govt process to ensure dealers are not left with 'holes' of £1k in their balance sheet whilst waiting for claims to be paid by central government office.
This is all in hand, leave the experts and parties involved to it. Dealers and manuf'rs want this to work, but the terms were something of a surprise, and it has to save jobs, not create more hardship in an industry where margins are already trimmed to the bone.
You specialise in contract hire rentals using large-scale funder terms, not outright purchase where the terms used are different, so you maybe don't have the relevant background knowledge to justify these statements.
News will start to emerge from manufacturers in the next few days, a meeting between key parties from the Govt and manufacturers went ahead yesterday and news from that will be released soon by each manufacturer.
No point debating it here.