Scrappage scheme 'to be extended'

lostinrates

:oI have a question:o (maybe it should have been a new thread, although i relates to moter industry)

This thread promted me to revisit links I have saved about green cars. My favourite pages tend to be the ones which depictcars that will be ''avilable soon''. Some of these are made in UK, like the Ginetta G50EV (which looks like it would be very expensive and the two grand wouldn't make all that much difference) there was also a man in Wiltshire somewhere who was hoping to bring a small car with a decent range (think he was aiming for 250 miles per charge) to the market. One that was forecast to be released this year seems to have disappeared form the site (or I can't find it). What I really wonder is how the down turn has impacted on these producers. also, what impact the downturn has had on a wider scale on new design, particularly of rightly or wrongly termed ''green'' cars has been?

Graham_Devon

roddydogs wrote: »

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

Jason has effectively answered this one for me.

However, worth bearing in mind that £300m was put into this scheme to start with, and we now have a "black hole" secnario where we don't know the budget or how much more could be put into the scheme.

That £300m basically served as a "cashback" deal for buyers. In other words, the dealers could advertise an offer, and the government would stump up half the cash for that offer.

It's a bit like Tesco advertising bread with 20p off, and the government giving 10p to tesco for every loaf of bread they sold. Asda is out on a limb, Tesco's do well in bread sales, and get a handout from the government to push their own line.

kennyboy66_2

Graham_Devon wrote: »

It's a bit like Tesco advertising bread with 20p off, and the government giving 10p to tesco for every loaf of bread they sold. Asda is out on a limb, Tesco's do well in bread sales, and get a handout from the government to push their own line.

I'm sure it doesn't knead me to tell you what a half-baked analogy this is.

The Government gets its dough back by charging VAT on each car.

I wish people would use their loaf sometimes.

Graham_Devon

kennyboy66 wrote: »

I'm sure it doesn't knead me to tell you what a half-baked analogy this is.

The Government gets its dough back by charging VAT on each car.

I wish people would use their loaf sometimes.

It get's the money back through VAT, yes.

But loses the revenue it would have made as profit on the VAT if they hadn't have given an incentive. Have lost the higher rate of road funds on the older cars. Have lost the revenue from all those scrapped cars MOT's etc etc etc.

So you could quite easily turn what you said around and say this has cost £300m of VAT revenue.

Either way, it's a cost.

kennyboy66_2

Graham_Devon wrote: »

It get's the money back through VAT, yes.

But loses the revenue it would have made as profit on the VAT if they hadn't have given an incentive. Have lost the higher rate of road funds on the older cars. Have lost the revenue from all those scrapped cars MOT's etc etc etc.

So you could quite easily turn what you said around and say this has cost £300m of VAT revenue.

Either way, it's a cost.

You miss the point. The scrappage scheme will help the economy flour again.

Do we give the french stick when they help their industry.

It's no use hoping that the market will separate the wheat from the chaff - it doesn't work like that.

Graham_Devon

kennyboy66 wrote: »

You miss the point. The scrappage scheme will help the economy flour again.

Do we give the french stick when they help their industry.

It's no use hoping that the market will separate the wheat from the chaff - it doesn't work like that.

IF the scrappage scheme had helped the economy, or the car industry flour again, WHY then is there a need to extend it?

If it was "floured" as you put it. There would be no need for extending the scheme.

It's floured on the basis that we provide stimulus, yes.

lostinrates

kennyboy66 wrote: »

You miss the point. The scrappage scheme will help the economy flour again.

Do we give the french stick when they help their industry.

It's no use hoping that the market will separate the wheat from the chaff - it doesn't work like that.

I'm rading this as a witty comparison of agricultual arable subsidies with the motor industry situation (but confused by the reference to a bagutte instead of a nice British split tin or something)

eta: then refreshed and relaised a whole bunch of posts had been missed the first time. That often happens, when I refresh new posts appear ABOVE posts I was reading??? why doesn't page loading always work well?

Anyway, thanks kennyboy, was funny.

kennyboy66_2

Graham_Devon wrote: »

IF the scrappage scheme had helped the economy, or the car industry flour again, WHY then is there a need to extend it?

If it was "floured" as you put it. There would be no need for extending the scheme.

It's floured on the basis that we provide stimulus, yes.

:A

hee, hee, hee

Sapphire

halight wrote: »

[/B]

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

Frankly, I'd be more impressed if the 'government' tried to discourage people from buying cars. Many people don't actually need them, and they are a horrendous waste of resources and serious pollutants - something this planet does not need.

JasonLVC

Sapphire wrote: »

Frankly, I'd be more impressed if the 'government' tried to discourage people from buying cars. Many people don't actually need them, and they are a horrendous waste of resources and serious pollutants - something this planet does not need.

Considering cars cost a huge amount of money (£10K upwards), cost a huge amount to run per year (fuel, insurance, taxes, repairs) and also depreciate quicker than you can blink.....how strange that so many sane and reasonable people would buy cars on a whim when they "don't need them".....we can only conclude therefore that people buy cars and drive cars because they do NEED a car.

As for pollutants, I'm fairly sure cars contribute much less to global warming than airlines and animals breaking wind, so we couldn't even go for Plan B and all ride horses or donkeys to work as they'll be just as bad as cars in terms of emissions - not even factoring in the huge swathes of fields that would be needed to produce crops....and then the pesticides will be needed, etc.

The government is incredibly confused with regard the environment - they are a good cash copw for them, but since we've been paying these environmental taxes since Labour came in 10 years ago, I've yet to see us all driving Hybrids, the buses in town are still circa 1970, the trains are still dirty diesels and they're building more airpoirt runways....