Scrappage scheme 'to be extended'

halight

The government is to extend its car scrappage scheme, the BBC understands.

http://news.bbc.co.uk/1/hi/uk_politics/8278679.stm

halight

At some point this money wont be there. Whats going to happen when the money runs out or everyone that wonts a new car has one?

my wife and i dont have a car and we get on ok So i dont relly know what the price od cars or running them costs.
What i do know is that iv only seen two brand new cars all year. And one of then was one that my old uncal had brourt. with his £2000 trade in he only paid £4000 for his new car. Its one of them Kiaw ones i think. Im not sure but at that price i dont think it was made in the UK?????
How is that helping our ecommeny????

Treadmill

Good news for anyone with a car nearing ten years old that fancys hanging on and chopping it in, bad news if you are in the market for a second hand car, lack of supply is pushing prices up.

Graham_Devon

What a surprise.

Said it would be extended when it first started.

Again, it's a "recovery" in which we extend the debt to keep the "recovery" going. So again, just delaying the pain.

SingleSue

Treadmill wrote: »

Good news for anyone with a car nearing ten years old that fancys hanging on and chopping it in, bad news if you are in the market for a second hand car, lack of supply is pushing prices up.

Tell me about it, was out looking a couple of weeks ago just in case my crapmobile didn't make it through the MOT, or was too expensive to get through the MOT and was surprised by just how much the second hand car market was being impacted upon.

Cars which had been nearer to the £500 were all of a sudden going for closer to the 1k etc...and no bargains to be found under £500.

As it turned out, crapmobile got through the MOT.

Graham_Devon

SingleSue wrote: »

As it turned out, crapmobile got through the MOT.

So not such a crapmobile

Really2

Graham_Devon wrote: »

What a surprise.

Said it would be extended when it first started.

You are Darren Brown. It is funy how you always state predictions after they have happened.

I remember saying about the car scrappage scheme coming to the UK and all the "bears" said it would fail and would not benefit the car industry.

Would be very interested to see that quote as it would have been very bullish on the scheme. Won't hold my breath mind you.;)

SingleSue

Hehe, I know.

Certainly surprised me I can tell you...but it will always be the crapmobile (as it was named nearly 2 years ago) after it cost so much getting the radiator/alternator etc fixed, they went one after the other!

JasonLVC

Well the VAT on a car costing £7,600 is £1,000 which is exactly how much the government are putting into the scheme and considering the average person spends around £10k on a new car, then the government are quids in on this one.

Even if punters buy a Korean car, it will be subject to import duty and VAT so still the government make on this deal. Only if we all go out and buy cars costing less than £7k will this actually cost the Treasury money.

On saying that, all we're seeing is consumers bringing forward their purchases - so instead of buying next year, they buy this year. This is storing up big problems for manufacturers and the next government as there will then be a drop off in sales (and tax revenue) as those cars are being bought today and not tomorrow....just when the economy is taking an upturn.

Plus, all these new cars have lower co2's and so lower tax bands (less tax for Treasury), are more fuel efficient (less duty at the pumps paid over), more exemption from congestion charges, etc.

Graham_Devon

Really2 wrote: »

You are Darren Brown.

Thanks.

Could we go one step further though and call me Derren Brown?

I'm not predicting after the event, I said it on the threads at the time, it will still be there if you want to go searching, but frankly, I cannot be bothered to "prove" myself

ninky_2

SingleSue wrote: »

As it turned out, crapmobile got through the MOT.

our crapmobile died but still went for a secondhander at auction to replace. even with the scrappage grant the new cars were still more than i wanted to spend on something so dull. plus where we live a new car would attract unwanted attention and stress.