It certainly sounds as if the Government is moving towards the UK motor industry’s ‘scrappage’ suggestion (how I dislike that word…).
Presumably someone has carried out research to check that it is the perceived price of a new car that is stopping potential car buyers from buying? Whereas used car sales are booming we are told?
Yet again we are to be encouraged to spend, spend, spend; knowing full well that it was greed and over-commitment that got us to where we are today. Maybe we won’t fall for this ploy, much as we weren’t impressed with the cut in VAT?
As I understand it (from AutoWired news today) we’re talking about cars and vans more than 9 years old (although I did read 7 years old somewhere else as per the German model) that you take to an authorised scrapyard to get a voucher worth £2000 to trade in against a new or nearly new (under 1 year old) car at a participating dealership.
Clearly the devil will be in the detail and one assumes the vouchers will go towards smaller and greener 09 cars, and possibly the 58s in compounds across the UK. Not top of the range gas guzzlers including executive and sports cars I presume…
And will the £2000 mean the end of impressive discounts for buyers? We’ve been seeing the likes of 20-25% off some strong sellers this year – will these discounts just disappear?
I’d like to know how much the old vehicle disposal plan will cost, over and above the reported £2000 donation to dealerships. Who is paying for this and how will it be policed?
Let me guess – I expect the the tax payer will foot the bill, whatever.
Then what happens to parts and car interiors that aren’t easily recyclable? Do they go to landfill? Maybe we are giving generous grants to participating scrapyards to provide this ‘service’?
I don’t see how this will sort out over-supply of cars in future. Surely there are too many mediocre models to make business sense in the UK market as is. I can’t see a return to over-optimistic pre-recession production levels in the near future, that’s for certain.
I sincerely hope my cynicism is misplaced, that lessons have been learned and that this, if it is introduced on Budget Day, April 22, is a financial success for all parties.
Not sure how it can be for motorists who don’t want to sell a cherished, fully depreciated and cheap to run older car to then buy a new one and see its value plummet during these tough times.
I clearly haven’t understood the full picture here – by all means tell me more if you understand all this any better…
FOXY Steph
Hi Steph
Nice article. Just what is the average driver of a nine year old banger going to do with their £2000 “voucher”? They won’t get far at a new car showroom and even before the “credit crunch” it’s unlikely they’d be approved for any finance. There has been much talk of the “success” of the German scheme boosting new car sales but has anyone looked at the demographics? Is this a scheme to help the environment or a scheme to help the motor industry? Both or neither? I suspect with this government’s track record it will end up being the latter!
MTI
Thanks for this MTI.
I wholeheartedly agree and am equally confused by the ‘scrappage’ scheme objectives.
Certainly more questions than answers so far, as you say.
Maybe the industry is grabbing at the nearest straw here.
FOXY Steph
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