Scrappage Scheme Bump Starts Car Sales

mr.broderick

Interesting read, still down year on year though.

http://news.sky.com/skynews/Home/Business/Car-Registrations-Show-Rise-Between-May-And-June-Says-Society-of-Motor-Manufacturers-And-Traders/Article/200907115329905?lpos=Business_First_Home_Article_Teaser_Region_7&lid=ARTICLE_15329905_Car_Registrations_Show_Rise_Between_May_And_June_Says_Society_of_Motor_Manufacturers_And_Traders

ManAtHome

What's your take on it Mr B - I'm guessing it will be working for smaller, cheaper cars (can't be that difficult to get more than a couple of grand off a 'guzzler'?).

Graham_Devon

I read it as in sales were again lower this month, but now as low as last month, therefore scrappage scheme = success?

Andrew64

I remember this being discussed a month or so back. The feeling was that it would work, however there were 2 'buts'. The first was that it would benefit foreign manufacturers rather than British ones and it appears that 90% are made aboard, most notably by Hyundai and Kia in South Korea. The second was that this would only bring forward purchases by people who were going to buy a new car anyway, meaning that sales will fall off a cliff later on. This is certainly true with my brother-in-law! He was going to buy a new car near the end of the year and is instead taking advantage of it to buy now!

DaddyBear

Graham_Devon wrote: »

I read it as in sales were again lower this month, but now as low as last month, therefore scrappage scheme = success?

Yep. You have to love the media spin. When is a decrease an increase??? When Labour is spinning it.

Edale

The budget was announced on 22nd April and there were reports of a scrappage scheme for a few weeks before this. This must have made people delay their purchase. For the scheme to be hailed a success with June yoy registrations down over 15% on 2008 (a month that itself was 6% down on June 2007) tells us what a desperate mess our economy is in. I agree with the scheme but without a stronger economy and with unemployment set to rise I think that the motor industry is far from saved.
(from an ex-motor trader)

geoffky

why do people drive old cars? because they want to let some one else take the depreciation for the first few years. so how this scheme helps is beyond me...people drive old cars for a reason...

I bought a new car in jan 08 and reckon my car has lost 10k so far....guess the age will be of my next one?

nearlynew

As I have said here before.......

How can anyone, wondering how to solve the current economic crisis, look around and think

"I know what the problem is.....

there's not enough cars"

Fella

This scheme is a scam.

I can tell you for a fact (a fact I can't prove, at least not that I'm prepared to prove on a BB, so it's up to you whether to believe me ) that as soon as this was introduced certain car manufacturers immediately dropped other incentives (stuff like free insurance) on the cheaper cars so that the net price remained the same.

This scheme could be summarised as the taxpayer simply paying £2K to the car manufacturers for each new car sold. The car-buyer is no better off & is actually worse off in the vast majority of cases, compared to deals available at car supermarkets.

JonnyBravo

geoffky wrote: »

why do people drive old cars? because they want to let some one else take the depreciation for the first few years. so how this scheme helps is beyond me...people drive old cars for a reason...

I bought a new car in jan 08 and reckon my car has lost 10k so far....guess the age will be of my next one?

The depreciation has been a revelation to you geoff??? :rotfl:

A bit of research was needed methinks.

:rolleyes:

geoffky

JonnyBravo wrote: »

The depreciation has been a revelation to you geoff??? :rotfl:

A bit of research was needed methinks.

:rolleyes:

not a revelation! but as a moneysaver someone else will be taking the hit on my next one..