Car Scrappage Scheme

Former_MSE_Guy

Car scrappage £2,000 damp squib?

Of the new £2,000 for scrapping 10+ year-old cars only £1k comes from govt, the rest from the manufacturer, but we don't know yet if it comes off list price or haggled down price. Plus it's only for new cars meaning there's 15% VAT, whereas you needn't pay this on nearly new.

To discuss the scrappage scheme click reply.

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anewman

The scheme is a waste of time. The manufacturer has to contribute £1000, so the prices of the cheapest cars will go up to compensate. Also, those discounts dealers have been giving to get customers in will soon dry up.

All in all, if you have a banger you want to get rid of, and can afford the extra £6k or so (or was probably going to buy new anyway whether the scheme happened or not), then you may as well go for it. But don't be led in by thinking you're getting a great deal, as you are not.

Hintza

Althoiugh I don't agree with Ling's conclusions she does highlight quite a good example of how the manufacturers are going to implement this scheme. Which comes as no surprise to any of us.

Also if a car sells for £5,000 + VAT (£750) then this scheme will only cost the government £250. Obviously over simplified and assumes the buyer wouldn't have bough a new car without the scheme.

Lemonade_Pockets

Would anyone like to guess my views on it?

mikey72

Good scheme, I don't care if it's my VAT they give back, or the mfr's discount is already spoken for, it's all money that I won't have to pay to replace my old car with a new one. The cost of change will be around £5000 for a i10, I don't get the hassle of selling my old car, and I save another £400 on the tax and MOT's, so that'll cover the service costs as well.
I wouldn't have thought of changing for a year at least, then for a second hand car otherwise.

njsb14

Some of the deals are not what they first seem. I have taken a look at the Ford Scrappage scheme for the Fiesta advertised on the ford website, says £2000 government scrappage scheme + extra £500 saving, looks good.......

The example they give is the Fiesta Zetec 3dr 1.25 82 PS petrol with Free Bluetooth = OTR £12,295 - £2,500 = £9,795

Now at present you can get the same car from dealdrivers for £10,039 + £135 for Bluetooth = £10,174.

So yes you save £10,174 - £9,795 = £379 by trading in your old car.

BUT the government has put £1,000 into the deal, so Ford has actually raised their prices by £1,000 - £379 = £621 and put NO extra of Ford's money into the scheme.

The real saving will come if the brokers prices are competitive and then the scrappage scheme savings are on top of this, we will have to wait and see.

Another thread also finds worse http://forums.moneysavingexpert.com/showthread.html?t=1653755 that you will pay extra £800 using the scheme on a Ford S-Max. Add in the £1000 the goverment puts into the deal and ford are making £1,800 more on the S-Max than before scrappage.

I know some people will argue that the scheme is to benefit both the Car Manufacturers and the public, but this is all costing us long term in our taxes and most of the Car Manufacturers are foreign benefitting from the UK tax payers.

jtownson

I really don't get the point of the scheme at all. You would think that they would tie it in with buying a greener car but no. You could trade in a fiesta for a Hummer if you wanted...not very green at all.

So it looks like the scheme is to keep people in jobs, but have they thought about the effect that this will have on local mechanics / garages who service these older cars? If everyone buys new then trade will drop for the local mechanics which could lead to job cuts again.

Another big question is what happens to the car that gets taken in? Some of them will be perfectly good, usable cars - do they crush them? This would leave a shortage of older cars on the market and push prices up. Leaving the people who can only afford older cars even worse off?!

I am struggling to think of a single worthwhile benefit of this scheme.....

goldspanners

theres about 3 or 4 threads on this S crap subject,could they not be combined?

Savethekipper

I spoke to the local Nissan dealer about this scheme over the weekend. He says the £2k is off the retail price not the haggled down price. So basically you might as well go in and see what offer they would do for you anyway, it may match the scheme the Gov are offering without all the rigmarole of having to have MOT, tax and having to have owned the car for a certain length of time.

heather_pastor

i've been 'uuuming & aaarhing' for a few weeks now whether to buy a new Fiat 500, and when this scheme was announced, i thought this would be a great opportunity to trade in my old Fiesta which is on its last legs.

but no...................

apparently Fiat have decided that as the 500 is such a good selling model they are not subscribing to this scheme. To add insult to injury, i was offered a paultry £250 off the showroom price of £11,300 - its not exactly a cheap car either !

seems i can only get this deal off either expensive cars or rubbish models that no one would want. Doesnt seem as though a lot of liason went on with the manufacturers before this scheme was announced.

WILL BE WRITING TO MY MP AND OTHERS TO HIGHLIGHT !!

shawad

MSE_Guy wrote: »

Plus it's only for new cars meaning there's 15% VAT, whereas you needn't pay this on nearly new.

Not true - any VAT registered dealer will have to charge VAT on anything they sell, be that new or nearly new.