Car Scrappage just announced [MERGED]

kitchpoo

Lemonade_Pockets wrote: »

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

Which in my Panda example, works out to be the £800 below the What Car target price.

richardw

The what car panda target price is £5886, so with £1000 off, gives £4886.

Can you get something similar to the Panda with a better spec and say 5000 miles on it for £4850?

Lemonade_Pockets

Thats assuming you have a qualifying car to px that was only worth £1 before hand

LinasPilibaitisisbatman

richardw wrote: »

The what car panda target price is £5886, so with £1000 off, gives £4886.

Can you get something similar to the Panda with a better spec and say 5000 miles on it for £4850?

Crap logic.

The dealers arent going to sell it for a k less, there just going to reduce how much of the discount down to the £5886 comes out of their/the manufacturer pocket.

People will not be getting cars cheaper, at least not significantly.

A fiat panda sold to someone yesterday at 6k will still be sold for 6k in 6 months regardless of scrappage

richardw

No need for the cr*p language, this ain't the pub.
Yes the dealer will sell for £6K, but the customer will get £1000 from the government scrappage scheme, so only needs to find £5k, or are you saying the dealer best price will rise to £7k?

buxtonrabbitgreen

I was waiting very hopefully for this scheme, till I found that the car had to have an MOT. Mine runs out on Saturday. So I will probably have to spend at least £300 if it passes at all. So if it does I might as well get another year out of it.
The car is 14 years old, but very reliable and comfortable. Though extremely low MPG

kitchpoo

So, in conclusion......

Some people will fit the brief, and end up with a car £1000 less than they expected (minus the cost of their vehicle - say £500) - so a real terms saving of £500 to the customer.

And becasue this is only a £500 saving, the top-end used market is only going to fall by a maximum of £500 as there will be plenty of people who dont fit the scrappage criteria.

The bottom end of the market will not be effected greatly as ownership for a year negates people buying them*.

Unknowns -

Will dealers be forced to scrap every car taken in through the scrappage scheme - resulting in good 2nd hand vehicles finding their way on the the used market?

Who is policing the scheme?

Would a dealer be able to offset a vehicle if it didnt fit the brief?*

*These two could be linked.

buglawton

It will an interesting test of UK govts competence and policy making ability to see how this scheme pans out in comparison with Germany. The German scheme resulted in a 40% increase of year on year car sales (with an emphasis on the more frugal, greener models) and is now being hugely EXTENDED.

Without comparing carefully with other places,. we just won't know - UK punter will be expected to accept the the usual exuses when a UK Govt scheme turns out to be a damp squib.

Link:
Scrappage scheme extended after German car sales rise 40%

PS just noticed that may major car manfrs (Fiat, BMW) have started putting scrappage UK Google ads up

Lemonade_Pockets

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.

johnjp

sheslookinhot wrote: »

Incidentally I have an 11 year old Volvo 940 Celebration Estate.

Me too and I am also keeping mine.

What`s the point of getting in debt?

The scheme may be taken up by show offs!