Budget Leak - £2500 for your old Scoobies!!
22 April 2009, 09:06 AM
#1
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Budget Leak - £2500 for your old Scoobies!!
Dip Yer Bread .......
And you thought you would never be able to offload your precious metal ..
Modified chavved up cars excluded apparently.
Don't say Labour has never given you anything - they help you buy a NEW Impreza
And you thought you would never be able to offload your precious metal ..
Modified chavved up cars excluded apparently.
Don't say Labour has never given you anything - they help you buy a NEW Impreza
22 April 2009, 09:11 AM
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22 April 2009, 10:29 AM
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I understand why they are maybe doing this but there a few questions (not about the politics) I have, Can anyone help me get my head around this?
So £2500 for your old car, So anyone that wants a new car will buy an old car for £1000 and take it to trade, Makes sense right?
So any car under the £2500 will eventually vanish as in a round about kind of way no car will ever be worth less than £2500.
So if I hold onto my old golf that I have for sale for £1000 at the moment will it go up in value after a few years as all the old golfs would have been snapped up and traded in?
Does this mean the second hand car market will only be £2000 - £10,000 ish now?
Will this make cars that would otherwise be sheds become classics due to dwindling numbers?
In principle I like the idea but what are the real repercussions will be?
So £2500 for your old car, So anyone that wants a new car will buy an old car for £1000 and take it to trade, Makes sense right?
So any car under the £2500 will eventually vanish as in a round about kind of way no car will ever be worth less than £2500.
So if I hold onto my old golf that I have for sale for £1000 at the moment will it go up in value after a few years as all the old golfs would have been snapped up and traded in?
Does this mean the second hand car market will only be £2000 - £10,000 ish now?
Will this make cars that would otherwise be sheds become classics due to dwindling numbers?
In principle I like the idea but what are the real repercussions will be?
22 April 2009, 10:39 AM
#6
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I understand why they are maybe doing this but there a few questions (not about the politics) I have, Can anyone help me get my head around this?
So £2500 for your old car, So anyone that wants a new car will buy an old car for £1000 and take it to trade, Makes sense right?
So any car under the £2500 will eventually vanish as in a round about kind of way no car will ever be worth less than £2500.
So if I hold onto my old golf that I have for sale for £1000 at the moment will it go up in value after a few years as all the old golfs would have been snapped up and traded in?
Does this mean the second hand car market will only be £2000 - £10,000 ish now?
Will this make cars that would otherwise be sheds become classics due to dwindling numbers?
In principle I like the idea but what are the real repercussions will be?
So £2500 for your old car, So anyone that wants a new car will buy an old car for £1000 and take it to trade, Makes sense right?
So any car under the £2500 will eventually vanish as in a round about kind of way no car will ever be worth less than £2500.
So if I hold onto my old golf that I have for sale for £1000 at the moment will it go up in value after a few years as all the old golfs would have been snapped up and traded in?
Does this mean the second hand car market will only be £2000 - £10,000 ish now?
Will this make cars that would otherwise be sheds become classics due to dwindling numbers?
In principle I like the idea but what are the real repercussions will be?
22 April 2009, 10:42 AM
#7
Don't forget that new cars won't be able have as much discounts of their RRP prices either: So currently, we can buy a brand new car at a price that is heavily discounted from the OTR retail price; For example a brand new WRX can be had for £2.5K off its £19.5K OTR retail.
I suspect that £2.5K discount might just dissappear if scrapage schemes come into play (as the industry will see the trade-in as the "discount" instead). Of course, If I had a £50 banger I'm still quids in, but its more hassle on my behalf to go and find one to offload at the dealers. I'd rather just have the discount without the "£2.5K minimum scrap trade-in" like we current have (if one barters hard enough
).
Anyway, its a short term fix; once all the people (with an eligable car worth scrapping) who can afford a new car have bought one. Sales will slump back to their previous levels. And its only going to help the low-end cheaper car makers; not the flash executive/sports cars and SUVs (so no help to Jag/LR/AM, would have helped MG-Rover...bit late now though )
In other words; Gordo is just plugging the leak with a bit of old manky chewing gum.
I suspect that £2.5K discount might just dissappear if scrapage schemes come into play (as the industry will see the trade-in as the "discount" instead). Of course, If I had a £50 banger I'm still quids in, but its more hassle on my behalf to go and find one to offload at the dealers. I'd rather just have the discount without the "£2.5K minimum scrap trade-in" like we current have (if one barters hard enough
).Anyway, its a short term fix; once all the people (with an eligable car worth scrapping) who can afford a new car have bought one. Sales will slump back to their previous levels. And its only going to help the low-end cheaper car makers; not the flash executive/sports cars and SUVs (so no help to Jag/LR/AM, would have helped MG-Rover...bit late now though
)In other words; Gordo is just plugging the leak with a bit of old manky chewing gum.
Last edited by ALi-B; 22 April 2009 at 10:45 AM.
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22 April 2009, 01:02 PM
#14
This will encourage all those who have pre-2001 cars who pay cheaper non-emmissions based VED to get a newer equivilent car and be charged at a higher rate CO2 based VED. Another sly move!!
22 April 2009, 01:30 PM
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I will be keeping the golf on the road I think. As above he will wait until were all in nice new cars then the tax will go through the roof on emissions.
22 April 2009, 01:36 PM
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The whole scheme is flawed from the outset.
Think about it, why are people driving about in so called 'old bangers' now? It's not out of choice mostly due to the current climate, a lot of people (myself included) have had to sell up their new/nearly new motors to cutback on costs and free up some emergency cash.
What no one seems to be asking or answering is what happens to average Joe Public who cashes in his old car, gets £2k or whatever monopoly money and then needs a new car?
Slight flaw in this logic, if the person didn't have the money in the first place to get a new car what makes this stupid goverment think they will have an incentive to buy a new model?
Personally I would not want to get into more debt through a loan just to be able to purchase one of the new models rolling off the line - all to help the autmotive industry... bollox.
That's this goverment in a nutshell, one dumbsht idea after another
Think about it, why are people driving about in so called 'old bangers' now? It's not out of choice mostly due to the current climate, a lot of people (myself included) have had to sell up their new/nearly new motors to cutback on costs and free up some emergency cash.
What no one seems to be asking or answering is what happens to average Joe Public who cashes in his old car, gets £2k or whatever monopoly money and then needs a new car?
Slight flaw in this logic, if the person didn't have the money in the first place to get a new car what makes this stupid goverment think they will have an incentive to buy a new model?
Personally I would not want to get into more debt through a loan just to be able to purchase one of the new models rolling off the line - all to help the autmotive industry... bollox.
That's this goverment in a nutshell, one dumbsht idea after another
22 April 2009, 01:52 PM
#18
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The Car Scrappage Scheme has been a great success around Europe - don't know if the British are different?
I cannot see it working, as those who know anything can see that the new price will go UP £2000 ... just because demand will ensure that Dealers can ask (and get) List Price!
I cannot see it working, as those who know anything can see that the new price will go UP £2000 ... just because demand will ensure that Dealers can ask (and get) List Price!
22 April 2009, 01:54 PM
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I'd love to see the criteria. I doubt very much the govt would want to hand out a 2k discount for a 4x4 gas guzzler.
My prediction was that it would effect the lowest 2 tax brackets. I want to see if I'm right
My prediction was that it would effect the lowest 2 tax brackets. I want to see if I'm right
22 April 2009, 01:56 PM
#21
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not unanimous view on that in Germany-- I did hear a German Economic Professor type bod on the radio the other day, he gave an alternative view on the scheme that was not as clear cut
22 April 2009, 02:10 PM
#22
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The Car Scrappage Scheme has been a great success around Europe - don't know if the British are different?
I cannot see it working, as those who know anything can see that the new price will go UP £2000 ... just because demand will ensure that Dealers can ask (and get) List Price!
I cannot see it working, as those who know anything can see that the new price will go UP £2000 ... just because demand will ensure that Dealers can ask (and get) List Price!
It may have increased sales Pete, but whether overall it is a "great success" remains to be seen.
Some of the European manufacturers think its a bad idea
22 April 2009, 02:30 PM
#23
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Slight flaw in this logic, if the person didn't have the money in the first place to get a new car what makes this stupid goverment think they will have an incentive to buy a new model?
Personally I would not want to get into more debt through a loan just to be able to purchase one of the new models rolling off the line - all to help the autmotive industry... bollox.
That's this goverment in a nutshell, one dumbsht idea after another
Personally I would not want to get into more debt through a loan just to be able to purchase one of the new models rolling off the line - all to help the autmotive industry... bollox.
That's this goverment in a nutshell, one dumbsht idea after another
22 April 2009, 03:51 PM
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From the budget report
To give a boost to the car industry during the current downturn, the Government
announces the introduction of a vehicle scrappage scheme. A discount of £2,000 will be
offered to consumers buying a new vehicle to replace a vehicle more than ten years old which
they have owned for more than twelve months. The Government will set aside £300 million for
this scheme with funding matched by manufacturers participating in the scheme. The
Government will work with industry to introduce the scheme next month. The scheme will
end by the start of March 2010, or when funding for the scheme has been used if earlier.
announces the introduction of a vehicle scrappage scheme. A discount of £2,000 will be
offered to consumers buying a new vehicle to replace a vehicle more than ten years old which
they have owned for more than twelve months. The Government will set aside £300 million for
this scheme with funding matched by manufacturers participating in the scheme. The
Government will work with industry to introduce the scheme next month. The scheme will
end by the start of March 2010, or when funding for the scheme has been used if earlier.
22 April 2009, 03:56 PM
#25
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So someone will have needed to have owned and driven a complete shed for more than 12 months and be now wanting to buy a clockwork minimoke for +£10K... that £300 million is quite safe then
22 April 2009, 04:22 PM
#26
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Dont particularly want to go into debt to buy a new car unless I can get one for £2500, therefore a free car. Last time I looked no-one does a car for £2500!
However I am already funding this anyway through my tax payments, so come to think of it i'd rather pay less tax and nobody gets £2500 off!
However I am already funding this anyway through my tax payments, so come to think of it i'd rather pay less tax and nobody gets £2500 off!
22 April 2009, 05:06 PM
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But, yes, some are modified - so fall into your 'shed' description
22 April 2009, 05:35 PM
#29
I think we've been down this road already.........
22 April 2009, 06:16 PM
#30
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Well, I'm finding it intriguing actually.
I've got my 1998 Audi which I'm in the process of looking for its replacement.
I'll be interested to see (a) if this will affect nearly new cars or (b) a new car on PCP
Just waiting to hear back from the dealership to see how this will affect me - hopefully in a good way
Dan
I've got my 1998 Audi which I'm in the process of looking for its replacement.
I'll be interested to see (a) if this will affect nearly new cars or (b) a new car on PCP
Just waiting to hear back from the dealership to see how this will affect me - hopefully in a good way
Dan