Scrappage scheme 'to be extended'

Thrugelmir

Sums up the state of British politics.....

To fill the news void from the Labour Party Conference we've had spin in the form of "Banker Bashing" and a "Car Scrappage Extension".

Following on from Liberals "Mansion Tax" last week.....

I now wait with baited breathe for the Tories contribution. Perhaps we will be treated to a "Duck House Council Tax Exemption".

Any politicians reading this forum. Get real. Please start addressing the issues that matter to people on the street.

kennyboy66_2

Thrugelmir wrote: »

I now wait with baited breathe for the Tories contribution. Perhaps we will be treated to a "Duck House Council Tax Exemption".

The Tories have recently pledged to re-link state pensions with average earnings rather than inflation.

Making the pension problem EVEN WORSE.

You could not make it up.

roddydogs

Graham_Devon wrote: »

They could have done, but at the moment, the car industry can just whimper a bit and Mandleson gives them more cash effectively.

Whats the incentive to knock down prices when instead you can just whimper to the government? They won't offer more when they don't have to.

What cash do they "Get" from Mandleson? its the Buyer that gets £2000 off, not the manufacturer, Explain how they "Get" it?

roddydogs

JayScottGreenspan wrote: »

If someone buys a £7k car under the scrapage scheme that they wouldn't have otherwise bought then it costs the Treasury nothing.

If someone buys a £7k car under the scrapage scheme that they would have bought anyway then it costs the Treasury £1,000.

Arnt you forgettin that the new car will probably be only £35 Tax, and will do much more MPG, both of whic will "Cost" the tresuary (ie Us Taxpayers) more in the long run?

Thrugelmir

roddydogs wrote: »

Arnt you forgettin that the new car will probably be only £35 Tax, and will do much more MPG, both of whic will "Cost" the tresuary (ie Us Taxpayers) more in the long run?

It costs the country less, as we import less oil over the longer term.

Thereby correcting the imbalance in the trade deficit..

JasonLVC

roddydogs wrote: »

What cash do they "Get" from Mandleson? its the Buyer that gets £2000 off, not the manufacturer, Explain how they "Get" it?

The government provide a payment of £1,000 to the manufacturer on the proviso the manufacturer matches that level of discount with a further £1,000, thus a £2,000 discount is established at the manufacturers level.

The manufacturer sells the vehicle to the dealer for £2,000 less than the usual price on the proviso, the vehicle is sold to a customer who qualifies under the car scrappage scheme. If they qualify, the customer takes home a car that is technically £2k less than the usual 'list price' - made up of £1k from the manufactuer and £1k from the government, the government contribution is in effect a subsidy to the manufacturer to sell the vehciel cheaper than usual. The customer simply gets his/her car £2k less than they first thought so are happy and not too fussed as to the mechanics of the deal behind the scenes.

JasonLVC

JayScottGreenspan wrote: »

If someone buys a £7k car under the scrapage scheme that they wouldn't have otherwise bought then it costs the Treasury nothing.

If someone buys a £7k car under the scrapage scheme that they would have bought anyway then it costs the Treasury £1,000.

You are quite correct - the difficulty is being able to determine who has bought a car becuase they NEEDED one and who has bought a car because the DEAL was a good one?.

Etiher way, the government are seriously interfering with the auto industry and simply pushing the problem (the problem that no-one can afford a car or wants one) onto the next government and may see the economy stall once more, just as those green shoots are poking through.

Thrugelmir

JasonLVC wrote: »

The government provide a payment of £1,000 to the manufacturer on the proviso the manufacturer matches that level of discount with a further £1,000, thus a £2,000 discount is established at the manufacturers level.

The manufacturer sells the vehicle to the dealer for £2,000 less than the usual price on the proviso, the vehicle is sold to a customer who qualifies under the car scrappage scheme. If they qualify, the customer takes home a car that is technically £2k less than the usual 'list price' - made up of £1k from the manufactuer and £1k from the government. The dealer is just a middleman on this occasion for this transaction.

Honda dealers contribute around £500 directly to the deal. I would imagine the other £500 just comes out of Honda marketing budget.

Worth remembering that Ford put up prices 3 times earlier this year pre scrappage scheme.

JasonLVC

Thrugelmir wrote: »

Honda dealers contribute around £500 directly to the deal. I would imagine the other £500 just comes out of Honda marketing budget.

Worth remembering that Ford put up prices 3 times earlier this year pre scrappage scheme.

Honda are making their dealers contribute?. Didn't realise they were fingering the dealers for this. No wonder Honda was reluctant to join in at first as the scheme wasn't designed like that, HMRC published guidance as to how the scheme should operate - but oh well, best laid plans and all that.

I think all the manufacturers have increased their prices this year, Ford especially as you point out. Still, just goes to show that the British public are easily fooled into buying a "bargain" - even though these deals were not attracting the best APR's either and so the house always win.

Thrugelmir

JasonLVC wrote: »

Honda are making their dealers contribute?. Didn't realise they were fingering the dealers for this. No wonder Honda was reluctant to join in at first as the scheme wasn't designed like that, HMRC published guidance as to how the scheme should operate - but oh well, best laid plans and all that.

I think all the manufacturers have increased their prices this year, Ford especially as you point out. Still, just goes to show that the British public are easily fooled into buying a "bargain" - even though these deals were not attracting the best APR's either and so the house always win.

I went browsing one quiet afternoon. The Honda dealer was very open. On the cheapest models in the range they actually make a loss. As giving away £500 was more than their net profit on selling the vehicle. So didn't actively push the scheme.