Car Scrappage Scheme

anewman

moggylover wrote: »

I do see the recessionary sense of encouraging people to spend during a recession (sounds a bad idea - but only spending will turn the economy around) and would be loathe to see yet more employment dissapear if the manufacturers went broke but don't think this scheme will help at all.

But what's the point in rewarding failure?! How come the car manufacturers don't do something themselves to help sales along if it's all that dire.

misterthrifty

Is there any evidence that prices for 10+ year old cars prices have gone up at all, as some people suggested they would do? It's just that I would like to offload my old car on some sucker who thinks he he trade it in under this scheme at some stage, then I can buy something a few years younger.
Ever hopeful.
Mr T

dorry_2

Hintza wrote: »

Hyundai Orders Up 400% In a Week After Scrappage Announcement.

Thu, 30 Apr 2009 14:34

Industry experts who are wondering what effect scrappage will have on car sales might want to use Hyundai as a barometer. In the first week after the announcement, enquiries at the company’s dealerships are up 400 percent, with buyers clamouring to make sure they can secure cars before stocks – or the government money – run out.

Although dealers aren’t yet allowed to take orders under the scheme officially, they are noting ‘expressions of interest’ which will allow customers to reserve cars from existing stock.

Hyundai dealers have also been supplied with a provisional scrappage price list, allowing customers to see what a new Hyundai can be expected to cost including the government and manufacturer allowances.

As expected, it is the i10 and i20 models which are attracting the most attention from buyers. An entry level i10, complete with air conditioning and the new 77bhp 1.2-litre engine, is predicted to cost just £4,995 with the scrappage allowance (£1,000 from the government, £1,100 from Hyundai). Alternatively, an i20 three-door could well be had for £5,995 (£1,000 from the government and £1,200 from Hyundai).

Tony Whitehorn, Hyundai UK’s managing director said: “It seems that a few big-name manufacturers are still prevaricating about scrappage. While they have been scratching their heads and confusing customers, we’ve been only too happy to show hundreds of potential buyers how a new Hyundai is within their reach.”

The Korean company has drawn on its experiences in the German market, where a scrappage scheme has been in place since January and Hyundai sales have leapt up by 140 percent.

Mr Whitehorn continued: “We’ve just had a delivery of 800 i10s and i20s and we will get them out to dealers in time for mid-May when the scheme is expected to go live. We expect these, and our existing stocks, to sell quickly though and so are negotiating with the factory to secure more production and keep up with the expected demand. This is a great opportunity for car buyers to move up to a cleaner, safer and more reliable new car and we don’t want to disappoint a single customer.”

See:- HERE for (honestjohn)

been and ordered one of hyundai's 1.2 i10's this morning, we have an old 't' reg banger to scrap, so for £5495, i am buying a silver one with air con, central locking, 6 speaker radio, cd player, front electric windows and a five year warrenty.

collecting it on 18th may when scrappage scheme starts :j:jIt drives like a dream and has five doors and plenty of room. Its only £35 per road tax and does 62mpg, this deal is hard in beat...me thinks

dorry_2

misterthrifty wrote: »

Is there any evidence that prices for 10+ year old cars prices have gone up at all, as some people suggested they would do? It's just that I would like to offload my old car on some sucker who thinks he he trade it in under this scheme at some stage, then I can buy something a few years younger.
Ever hopeful.
Mr T

the person u sell it to might know they have to own it a year before they can take part in scrappage scheme:rolleyes:

CFC

numsadog wrote: »

Not wrong!

I agree there are a number of people who buy a new car and keep it for many years, however, a large number of people own an old second car because it was cheap to buy in the first place. They would not replace it with a new car, particularly if they are on average incomes with mortgages to pay and families to support.
There are also a very large number of people who are on low incomes and who are one car families because an old car is all they can afford. The prospect of using the scrappage deal to buy a new car is an irrelevance, even if the prospect of raising a loan, which could represent a high proportion of their annual income, was remotely realistic.

There may be as you suggest a healthy interest in the scrappage deal but it will be insignificant compared to the number of people who carry on with their old car and who replace it with a less old car.

Regarding whats wrong with borrowing money, there are still people about who prefer to conduct their financial affairs incurring the least amount of debt possible. They would rather run an old car that they can afford than a new one that represents a debt burden.

This is nothing more than a badly considered political gimic.

You originally said that this was a poor scheme because

People who run 10 year old cars usually do so because thats all they can afford. They may aspire to own say a 5 year old but never a new one. They may even have to borrow money to do this.

What you wrote in the post quoted above is not the same. Yes, there will be people who cannot afford to swap their banger for a new car. There are also a substantial number who can.

There's nothing wrong with borrowing money for a new car, or even a second hand car, UNLESS you don't want to , or cannot afford the repayments.

I think you are missing the point of this scheme. It is not to 'help out struggling individuals', it is to 'assist in preventing car marques going under with the associated job losses'.

buglawton

The only 'marques' that have honest list prices and which offer the more affordable new small cars seem to be Korean or Italian. Did the Govt. factor this in?

twhatmough

I have a 9 year old Astra, done 85,000 still going strong. Why should I trade in a car which is in good working order? It seems to me that the greener thing is to keep using it until it becomes unservicable and uneconomic.

buglawton

Its an economic stimulus deal not an environmental one. Do note though that airbags on a 10 year old car are thought to be risky as the seams may split when they detonate.

anewman

buglawton wrote: »

Its an economic stimulus deal not an environmental one. Do note though that airbags on a 10 year old car are thought to be risky as the seams may split when they detonate.

They can be replaced (at great expense usually). Also, a car doesn't need air bags to be safe.

Bronnie

twhatmough wrote: »

I have a 9 year old Astra, done 85,000 still going strong. Why should I trade in a car which is in good working order? It seems to me that the greener thing is to keep using it until it becomes unservicable and uneconomic.

It's your choice . No one says you HAVE to.