old for (nearly)/new

[Terranger]

Am I reading this right.
The government will pay £2000 to anyone willing to give up a nine year old (or older) vehicle.

So, what's to stop me for signing up to this scheme, taking the cash, lending from the bank, buying a new car, selling it on (adding a bit of profit) and pocketing the proceeds.

hmmm :-k :-k :-k

[BigBlueBeast]

Seen this http://www.ukscrapscheme.co.uk/?gclid=CMWEoovy-pkCFQFHFQodl0xXGg  and it seems it is an incentive to buy NEW cars to help the "struggling car makers"

If it was £2000 for a car over 9 years, I would make a fortune!! lol!

[Yoshi]

Well its cars over 10 years beginnning next month and ending in mar 2010 :D so me and bettyblue22 are going out car hunting tomorrow to see which one we would like!

[Gordo]

Am I reading this right.
The government will pay £2000 to anyone willing to give up a nine year old (or older) vehicle.

So, what's to stop me for signing up to this scheme, taking the cash, lending from the bank, buying a new car, selling it on (adding a bit of profit) and pocketing the proceeds.

hmmm :-k :-k :-k

In a word: Depreciation. Your brand new, showroom-fresh car will be worth a lot less the moment it hits the road.

...and if anyone's in the market for new car they'll be wanting a brand new one with the £2000 tax-payer subsidy, not your nearly-new, more expensive one.

Don't forget to take in to account the cost of your bank loan - borrowing from the bank isn't cheap at the moment.

This new scheme is a bit of theatre to keep the papers happy (The Sun was crowing about it today, I notice) and make people think of buying a new car. It isn't going to help employment much (few cars are British-built these days), increases pollution (I thought we were being told to be "green" :-k), reduces the value of used cars, kills the price of scrap metal etc...

What's the betting that road tax will go up to pay for it? 

[muddyjames]

(The Sun was crowing about it today, I notice)

I thought you would be more of a Times man. Hmm.

Anyway. It all sounds great, but. Where is the masive catch. Also. Can you part ex in more than 1 car, say 3 of them? Also can you go and buy an old heap for £200 and get a new car? 4 of them and you have a new fiesta. (not that I would buy one after my courtesy car I gave back) but even so!

[muddyjames]

oh, and I heard that the goverment will only give 1k. They expect the car dealer to pay the other 1k. Car dealer will hike new car prices up by 1k then to cover the cost!  :doh:

[Gordo]

(The Sun was crowing about it today, I notice)

I thought you would be more of a Times man. Hmm.

Anyway. It all sounds great, but. Where is the masive catch. Also. Can you part ex in more than 1 car, say 3 of them? Also can you go and buy an old heap for £200 and get a new car? 4 of them and you have a new fiesta. (not that I would buy one after my courtesy car I gave back) but even so!

It was the bloke sat across from me on the train that was reading it, not me.  :roll:

There will almost certainly be terms and conditions stopping you buying a wreck and claiming with it - and claiming more than one discount per sale. The govt aren't that daft.

[billy badger]

the catch would seem to be that you have to have owned the scrapper for a minimum of 12 months. I would guess that anyone trying to sell a 2 or 3 year old car is going to have problems as surely there will be no demand.

[crazymac]

the catch would seem to be that you have to have owned the scrapper for a minimum of 12 months. I would guess that anyone trying to sell a 2 or 3 year old car is going to have problems as surely there will be no demand.

I was told 2 years? you can only do one car to get it and you need to using finance I think as well!!

Ever get the feeling they want us in more debt????

[william127]

are there any restrictions on the type of new car you can claim against eg no cars over 1.8litre 0r xamount of co2? as that would make the scheme useless for most of us on hear- 2grand is nowhere near enough for us to give up towing, not need to drive up tracks, carry 7 or more people, or, heaven forbid, go laning or offroad?

i reckon that in that in 5 years time the tax on hybrids, electrics etc will sudenly go up to £000s, a bit like the way diesel lept up past petrol a few years ago.

[V8MoneyPit]

It applies to cars over 10 years old.
You have to replace it with a new car. With certain restrictions as said above.
You have to have owned the old car for at least 12 months which stops people rushing out and buying cheap cars. The scheme is only due to run for 11 months.
The government is only offering £1000 and the manufacturer has to stump up the other £1000.


Now, maybe I'm being thick, but.....

Most people in the market to buy a new car, even a cheap one, are not currently driving around in an old banger. So the £2000 off is unlikely to make them rush out and buy a new car.

At the end of the market where it might have a minimal effect on encouraging people to buy a new car, the cheap end at around £6000-£7000, the manufacturer has to effectively discount the car by £1000...... or 15%. How, exactly, is that supposed to help the car industry?

People who are in the market for buying an average saloon at, say £12,000, are highly unlikely to be driving a sub £2000 car at the moment.

I can't see this is going to have any effect at all on the car industry. All it does is employ more civil servants to run the department.

[ChrisV8]

It's a load of b*******ks just being debated by Jermy Twine on radio.

If you run a 10 year old car you hardly have the dosh to go buy a new one without a big loan from the bank !! But anyone worth his salt and paying out real money can negotiate much more than £2k off a new car surely ? My Jeep Dealer has a 58 plate Disco 3 on his forecourt with 800 miles on the clock but £16k off list, what did he pay for that ? Bet he has £4k profit in that somewhere.

Are 10 year old cars really that fuel inefficient and polluting ?

I understand that about 60% of a cars pollution over a ten year cycle is building the thing !! Look at the results of the American study into the Hybrid con ! :roll: :roll: :roll: Least polluting vehicle over vehicle life .........................Jeep Wrangler  :clap: :clap: :clap: :clap:

[crazymac]

Just nicked this off Difflock

Whilst the car industry waits for the government to decide on a German-style ‘scrappage scheme’ for cars there was good news for Britain’s beleaguered sapling planting businesses this week as ministers announced a new Sawage Programme for old trees. Under the new initiative, anyone with a tree over nine years old will be able to claim £2000 towards the cost of a new sapling if they cut down their old tree, chop it into little pieces and then burn it.

‘This will be a great boost to the tree growers of Britain,’ said David Short-Termism, the minister responsible for introducing the new scheme. ‘As the current economic crisis worsened, this vital industry reacted as best it could by continuing to plant acres and acres of saplings. Unfortunately, demand for these trees has slowed dramatically and now is the time for the government to use your taxes to offset their ineptitude.’

Mr Short-Termism also believes that encouraging people to destroy older, more interesting trees will have a valuable environmental effect and denies that old oaks, horse chestnuts, elms and so on can actually be better for the environment; ‘Old trees are often very dirty with moss and have squirrels living in them. By chopping down such trees and replacing them with a clean new sapling there will be a marked reduction in such factors as the amount of leaves dropped in Autumn and some other tissue thin reasons I haven’t thought of yet’.

The new scheme has been greeted with delight by major tree growers and by the bodies that represent them including the Society of Tree Growers & Planters. ‘This is exactly the sort of flimsy quick fix our industry needs,’ said STGP spokesman Mhike Dhesperation. ‘A brief period of slightly increased tree buying activity will certainly see us through the recession. Assuming of course that the recession only lasts a couple of months and then everyone who’s already chopped down an old tree and bought a new one decides they want to buy another new one. And that’s exactly what’s going to happen isn’t it? Erm…’

[carbore]

INterestingly the sections I scanned in the report say nothing about any CO2 limits etc etc so you could scrap an old fiesta 1.1 ang get money off a new Disco and there seems to be nothing in the report about there being ANY environmental angle to this at all its only for helping car mfrs.

As we are looking for a new car it is tempting, but As the Dealer has to put £1000 towards the £2k then you can bet scrappage will be "not inconjunction with any other offer", I looked at VW prices the other day and they are all £1k of list so there is that £1k already so Darling has only effectivley put in a 1k discount for the consumer.

Aslo I don't see the point in buying a new car anyway id rather buy a 1 year old car thats for sub 10k miles on and let someone else pay the forecourt depreciation.

That said If we can find a good deal and scrappage then my MOT failure Series 3 is heading for that graveyard in the sky!