Car Scrappage just announced [MERGED]

trets77

But do the Dealers have to "scrap" the +10 year old cars ?? . if the car to be traded in is perfectly healthy and roadworthy then what is the harm in selling it on at auction say ? this might well lead to flood of good used cars on the market .

i don't think service centers will be going to wall ect . what will more likely happen is that the real no hope bangers ( like mine ) will be traded in and scraped for new ones , as well as some well looked after cars which won't be scraped . people on a budget looking for a car and who are not considering a new car would find the market full of good quailty used cars that previous owners may have been reluctant to have traded in until now

thing is if you do get your £2K discount then the dealer is likely going to clam up on further negotiations and price reductions . With the market as it , it may be realistic that you could knock £2k off the sticker price with the dealer and then get something for your old car by selling it private .

jtownson

trets77 wrote: »

and do the Dealers have to "scrap" the 10 year old cars ?? . if the car is perfectly healthy and roadworthy then what is the harm in selling it on at auction say ? this might well lead to flood of good used cars on the market .

thing is if you do get your £2K discount then the dealer is then likely going to clam up on further negotiations and price reductions . With the market as it , it may be realistic that you could knock £2k off the sticker price with the dealer and then get something for your old car by selling it private .

Yeah i agree, Dealers will be rubbing their hands with glee! If i was buying new, i would haggle down to the last penny then all of a sudden at the last minute drop in the fact that i have a car for scrappage and i bet the dealer will suddenly revise his/her prices. I can hear the line words now "Oh, we can't give you that price if your using the scrappage scheme as well"

trets77

Also don't forget that no matter what the state of your old banger you can still get around £40 for it by calling up a local scrap merchant .

i agree with jtownson if you do want try take advantage of this scheme then go in not mentioning your 10 year old banger and see what you knock of by yourself , then mention the 2k scrap allowance when you have got them as low as they will go .

DealDrivers_company_representative

Manuf'rs and the govmt are yet to finalise a plan on how to manage this, some manuf'rs may opt not to take part. Don't ask your dealer yet as he has nothing he can tell you..he knows no more than you. The manuf'rs will disseminate process and information down to their dealer networks at an appropriate time. We took over 180 calls in 4 hrs yesterday on this in just our own office (the first came in before the Chancellor had even sat down!), so heaven knows what dealers are felling like if they are getting the same question a hundred times an hour.
This is not driven at dealership-level, they have to wait for their manuf'r to confirm participation and process.
We have set up a 'latest' guide to what is know about it, plus some conjecture, on the 'how?' page of our website - in a bid to reduce the incoming calls to our own office a little, we will keep it updated as soon as parts of the process (and effects on new car prices) become known - to try and help everyone.

Lemonade_Pockets

Am i missing something?

The main point of the scrappage scheme is to help the motor industry and imparticular ailing MFR's.

So i'm not sure why any of you are expecting MFR's to reduce their prices further and therefore make a bigger loss, this would be completely counter productive.

To me it is patently obvious that all the participating MFR's will just reduce their discounts by £1000 and use this "profit" to contribute to the scrappage scheme. So as a consumer you don't win or lose anything from that point of view. The only real benefit is the £1000 that the government are putting on the table.

IMO opinion the Goverment should of just said we'll give £1k and left it at that - the same as they have done in France. Germany's goverment as previously discussed in other threads have over egged it somewhat by throwing €2500 in.

richardw

Lemonade_Pockets wrote: »

The only real benefit is the £1000 that the government are putting on the table.

Exactly, so if the best deal on a car from the dealer was £6000 before this announcement, the best deal from the dealer is still £6000, there's no room for another £1000 off from the dealer. So £1000 from the government is only possible.

BUT the 10 year old car, or older, has to have a valid MOT, some of these will be worth more than £1000.
The real benefit is for those with cars worth say about £300, but that will be £700, which is a lot less than the £2000 figure flying around.

Lemonade_Pockets

Wohoooo,

Someone understands it!

buglawton

So the govt announces a scheme without the MFRs having agreed to it....
This will be fun to watch.

Looks like this scheme might encourage that type of buyer who buys new cars anyway. For Moneysavingexperts like us, it's a case of "move along please, nothing to see here".

trets77

Lemonade_Pockets wrote: »

Am i missing something?

The main point of the scrappage scheme is to help the motor industry and imparticular ailing MFR's.

So i'm not sure why any of you are expecting MFR's to reduce their prices further and therefore make a bigger loss, this would be completely counter productive.

To me it is patently obvious that all the participating MFR's will just reduce their discounts by £1000 and use this "profit" to contribute to the scrappage scheme. So as a consumer you don't win or lose anything from that point of view. The only real benefit is the £1000 that the government are putting on the table.

IMO opinion the Goverment should of just said we'll give £1k and left it at that - the same as they have done in France. Germany's goverment as previously discussed in other threads have over egged it somewhat by throwing €2500 in.

Like most things this Government does , The spin looks great but get down to the detail and you find it is not worth a hill of beans .

like the new Green cars they were offering subsidy for . great you think until you find there isn't actually a car you can buy that qualifys for it . But that does not stop the government minster blowing a trumpet about it on this weeks BBC Question time .

If you were in the Market to buy a new car then i think you may well get yourself a better deal by shopping around and then selling your car old private .

richardw

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.