mattx (28th April 2009)
Let's face it, new cars always have been and always will be a total waste of money.
I drive a 12 year old Ford Mondeo and will continue to do so until it falls apart around me and I'm left driving just four tyres.
I've always owned cars from the cradle to the grave so to speak, which means I'm bad news for the car industry and good news for the planet, having only ever had three cars since 1984.
I prefer to spend my hard-earned cash on more sensible, enjoyable pursuits such as drugs and prostitutes. EDIT: I meant to say travelling abroad and horse riding...!
mattx (28th April 2009)
I drive a clapped out Peugeot 306 1.9TD. It is almost goosed but has served me well for the last 6 years. I have always bought old cars then drove them till they dropped, (which this one is doing). I had never thought to buy a new car but this incentive really has changed my ideas and i may just take them up on the offer as the value of mine is around £500 at the moment so an extra £1500 for it is a reqal bonus as a deposit on a new one and as new cars lose around that ammount in the first year i class it as getting a free year...!!!! (just my mental thinking though...)
The only thing i am worried/thinking is that people will exploit it. Dont know the full details of the scheme so correct me if i am wrong, but woudl this not provide a market for 10 year old cars!!!!! Say i bought 5 10 year old cars for £500..... then sold them to people who want to buy a new one for £600. they get the benefit of £1400 off there new car and i am a cool £500 up. everyones a winner.. .
Sod you lot with cars, [ ok I have one that's only used at weekends to ferry the kids around in ] but what about us bikers of this world ?
As usual we get SOD ALL and forgotten about - thanks Darling you furry eyebrowed sperm of the devil.
Half the cost of the scheme is going to met by the 'industry', weather this is delt with by the dealer or the manufactuer hasn't been agreed. But in practice this will either have the effect of increasing car prices list prices or it'll reduce the bargaining power of any taking advantage of the scheme. This could actualy harm car sales.
I know the government like to crow about how well this has worked abroad, but in the UK a much higher proportion of new cars are bought by fleet operators. IMO a better scheme would have been to slash company car tax and make sure banks are giving proper finance to leasing operators (some of which are turning away existing customers because they can't borrow to fund new cars).
It would also help if the government cut their anti car atitude and stopped punitively taxing motorists. I'd be much more likely to buy a new car if I enjoyed motoring.
Last edited by K.C.Leblanc; 28th April 2009 at 01:06 PM.
But I also agree. This £2k scrappage scheme is pointless. People who run cars 10 years old, worth less than £2k do so for a reason. £2k isn't a lot of money when a replacement car of the same size (my earlier comment was tongue in cheek) would cost significant amounts of money.
Here's an offer. If anybody is planning on getting a new car, but doesn't have a car older than 10 years to trade for your £2k off then give me a shout.
I'll swap my 12 year old motor for your < 10 year old motor. Win win. You get your £2k off, and I get a newer motor.
one aspect of this is the limited time nature of the offer....i think that's why a stimulus is a good word.
it's not an initiative to address the longer term issues of supply and demand, and the profitability of the sector over the longer term, it appears to be a way to reverse declining sales in the short term. they seem to be saying take advantage of the incentive now or hang on to that old banger and miss the window, it's perhaps more of an incentive for those already looking to buy but are in two minds because of uncertainty surrounding the economic situation.
whether it's really a discount, or more psychology, i don't know. car buying is also different in the ability to buy with no money down....i don't think the gbp are ready to shun that type of financing just yet, especially if they perceive such a trade-in offer as good value proposition.
i'm also wondering whether too much faith has been put in assumign success here becuase of success on the continent, but put it this way, car sales can't get much worse. The level of improvement in sales will tell us whether this has been a success.
Scheme runs until may 2010 or when the capped funding dries up.
The £2,000 grant is made up of £1,000 from government with matched funding from manufacturers. The scheme will operate from mid-May until March 2010 or until the government funding has been used.
I worked for six years in the motor trade and the "£2,000 to change your 10 year old banger of a brand spanking new car gimmick" is just that, a gimmick.
I've been speaking to a lot of people that I used to work with and most of them see the £2,000 part exchange allowance as a hindrance rather than a help.
People tend to think that their car is worth more than what it is, now you get "My car's worth £500 but now I get an extra £2,000 part exchange allowance, so now my car is worth £2,500". The reality is that the car is still only worth £500.
The mechanics of how to show this £2,000 in a deal is an issue. Do you show it as a discount? Do you inflate the part exchange value? Do you use the £2,000 as a finance deposit? Do you use the £2,000 as a cash back?
What do you do with the £500 scrapper when you do the deal? Sell it on? Scrap it?
As an average most new cars have a dealer margin of 12%-15% i.e. if the car is £22,000 on the road, the dealers margin can be anything between £2,640 - £3,300. From what I've been told, some manufacturers feel that the £1,000 will have to come from the dealer margin initially and at the end of the financial quarter, if the dealer has hit the quarterly sales target, the manufacturer will pay the £1,000 back; if they don't, no £1,000!
There are 9,600,000 cars and 995,000 light commercial vehicles (a total of 10,595,000 vehicles) over 10 years old in the uk! It would be better if they gave £2,000 for each of the 10,595,000 cars & vans to invest in trains, buses and new green transport technology.
The motor trade is under tremendous pressure. Most dealers need to do over £150,000 worth of business a quarter just to pay the bills. This is a no win situation for the motor trade.
Things are going to get a whole lot worse before they get better.
Good, should be able to pick up a few more bargins then......Things are going to get a whole lot worse before they get better.
Older (cheap) cars are going up in value because there is a shortage of part exchange cars because no one is buying new(er) cars.
A friend of mine opened his own user car garage, specalising in between £500 and £3,000.
He's now being forced to stock cars between £1,500 and £6,000 because there aren't enough cheap cars about
So my advice; if you see a bargin, buy it!!!!
Ive been doing my part for the motor industry for years! Between age, accident, theft and boredom I have had no less than 9 cars in just over 6 years Not a single new one tho, most just old enough to lose that new car premium
I think this scrappage scheme is mostly window-dressing & spin, brought on as a reaction to pressure from the motor industry and what is being done elsewhere in mainland Europe.
I cannot see it helping UK car assembly plants as many of the smaller cars are imported these days.
Nissan still make the Micra in the UK, BMW make the Mini.... but what other small cars are assembled here? I cannot think of any......
Personally, and being of advanced years with no mortgage & family flown the 'nest' , I tend to buy nearly new (ex demo, pre-registered cars) and sell them just before they are 3 years old. I need reliability & it avoids the 'out of warranty' issues with so much complex electronics.
In January I broke my own 'rules' by buying new; I got £9k off a £24k vehicle which was cheaper than a 1 year old car.....
torledo (28th April 2009)
There are currently 1 users browsing this thread. (0 members and 1 guests)