Depreciation wipes out scrap cash ‘in 88 days’

donaldtramp

http://www.belfasttelegraph.co.uk/lifestyle/motoring/depreciation-wipes-out-scrap-cash-lsquoin-88-daysrsquo-14303314.html

Go ahead, waste more of our tax money Clown.
Anyone else thinking of taking up the governments offer of taxpayers money?
Go on you'll get 88 days out of it.
Not very MSE eh?

The £2,000 incentive under the Government’s “cash for bangers” car-scrappage scheme will be wiped out in just 88 days due to depreciation, it has been revealed.
From Monday, owners of cars 10 years old or more will get £2,000 if they trade in their old model and buy a new one.
But according to price comparison company uSwitch.com, vehicle depreciation is set to be the “thorn in the side” of the scrappage scheme.
The company said:

• On average, the initial £2,000 incentive is wiped out in depreciation in just 88 days of owning the new car
• In total, new vehicles purchased under the Government’s car scrappage scheme are set to lose £12.5 billion in depreciation after just one year
• Purchasing one of the top ten most popular new cars costs £16,232 on average and this value plummets by 49% in the first year alone
• The UK’s best-selling car — the Ford Focus Style — loses £8,635 or 51% of its value in the first year
• Drivers should read the small print on car insurance policies as the write-off value varies substantially between policies.

It continues....

Graham_Devon

I think the cash for scrap scheme has been mainly aimed at those who see something shiny and new and go for it, without looking into it.

It has been good for a very small handful of specific cars, but that's about it. Think you can get the Fiat Panda for around £4995 band new.

It's had a knock on effect to dealers aswell as independant dealers though. It means their 1 year old stock of smaller cars such as this, going for around £4500 are basically a waste of space. Heard a bloke on the radio the other day saying he would now lose around £1500 per car on around 30 cars, because the scrappage scheme means you can buy a new one for the same as the cost of a one year old model.

Was pushing them to the edge, and they are going to have to take the loss, of around 40k and just that batch.

Of course, not everyone has a 10 year old car to trade in, so there may be some buyers who have to pay more than the cost of a brand new car for a one year old car, but apparently these people want the same discounts if they are going to buy a car.

Not that anyone sane wants a fiat panda brand new anyway....

PasturesNew

My dad asked me the other month about it. I pointed out to him:
- you'd never buy a new car
- your current car cost £700 and has lasted you 5 years. Whatever you buy now will be your last car and will only need to last 2-3 years before you can't drive any more (he nearly killed me last week through not being able to see/not being good at judging traffic)
- you could buy one online cheaper than any dealer you can find where you live
- you could buy slightly 2nd hand at half the price
- why not just spend £1000 on a similar 2nd hand car to what you bought last time ... and forget about paying £4000 for a new one

pickles110564

donaldtramp wrote: »

http://www.belfasttelegraph.co.uk/lifestyle/motoring/depreciation-wipes-out-scrap-cash-lsquoin-88-daysrsquo-14303314.html

Go ahead, waste more of our tax money Clown.
Anyone else thinking of taking up the governments offer of taxpayers money?
Go on you'll get 88 days out of it.
Not very MSE eh?


It continues....

In five weeks time I will be picking up a new Aygo. My car at the moment is 13 years old and has done about 235K miles and does about 15/17 miles to the gallon when going back and forth to work. Insurance is about £250 a year, Tax £185, MOT £50 (plus normally a couple of hundred quid). The ABS, Steering Rack, Front tyres, the front suspension coils are all broken.
How much will this cost to replace on my BMW?

However Aygo is £35 Tax, group 1 insurance, 3 year warrenty and servicing. 3 year old ones still are fetching £5800 secondhand.
I would say I am being very MSE.
Well done Broon for one good policy.
Also not forgeting all the loverly people that will keep in employment for it as well.:T

Graham_Devon

Theres a guy talking on the news now actually, something about GM motors. But he's stating we should put the price of fuel way up to force people out of their cars so that they buy new smaller, more efficient ones, which would help car makers.

I have to laugh.

Bleed people dry, and then expect them to have 5k sloshing around to buy a new eco box!

pickles110564 wrote: »

However Aygo is £35 Tax, group 1 insurance, 3 year warrenty and servicing. 3 year old ones still are fetching £5800 secondhand.
I would say I am being very MSE.
Well done Broon for one good policy.
Also not forgeting all the loverly people that will keep in employment for it as well.:T

And you can play footie with them! Bonus!

FungusFighter

pickles110564 wrote: »

In five weeks time I will be picking up a new Aygo. My car at the moment is 13 years old and has done about 235K miles and does about 15/17 miles to the gallon when going back and forth to work. Insurance is about £250 a year, Tax £185, MOT £50 (plus normally a couple of hundred quid). The ABS, Steering Rack, Front tyres, the front suspension coils are all broken.
How much will this cost to replace on my BMW?

However Aygo is £35 Tax, group 1 insurance, 3 year warrenty and servicing. 3 year old ones still are fetching £5800 secondhand.
I would say I am being very MSE.
Well done Broon for one good policy.
Also not forgeting all the loverly people that will keep in employment for it as well.:T

Not much of a chick magnet tho is it mate?

get more pulling power on a mobility scooter:rotfl: (better engine to:D)

pickles110564

FungusFighter wrote: »

Not much of a chick magnet tho is it mate?

get more pulling power on a mobility scooter:rotfl: (better engine to:D)

Yeah you are right there but I could always borrow Midlife crisis boy's motorbike.

mewbie_2

Bet you'll be sorry to see the Beemer go though. Whether it's old or not, it's still a Beemer. Not a Hugo.

FungusFighter

pickles110564 wrote: »

Yeah you are right there but I could always borrow Midlife crisis boy's motorbike.

Mate, even a sewing machine would be better than an Aygo - what mad you do it?:eek:

abaxas

FungusFighter wrote: »

Not much of a chick magnet tho is it mate?

get more pulling power on a mobility scooter:rotfl: (better engine to:D)

Some people prefer to keep their '!!!!' inside their pants, much better than having it removed and stuck onto the front of you car. Less painful too.

ciano125

I took an aygo out on their three day test drive thing. Took it back after two days :rolleyes: