But it hasnt changed your stance, you were going to buy a newer car anyway, the dealer was still going to make money from you, all thats happened is you get a slightly newer car.
£2000 car scrappage scheme
- Thread starter monkey_boy
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But it hasnt changed your stance, you were going to buy a newer car anyway, the dealer was still going to make money from you, all thats happened is you get a slightly newer car.
Soldato
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a 10k car costs 1500 in vat, Im not sure what the cheapest new car is but its not going to cost government as much as it appears
Soldato
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Ummm.... how do you figure that one out? Where is the missing VAT going to come from?
actually 15% VAT should be worked out on the ex vat price, Not in the INC vat price.
So in actual fact a £8696 car costs £10,000.04 with VAT on top. So for every £10,000 spent the governemnt receives £1304 in VAT back.
So of the £2000 voucher given out by the government, at least 2/3 of that is likely to come back in car purchases that wouldnt otherwise have been made.
So in actual fact a £8696 car costs £10,000.04 with VAT on top. So for every £10,000 spent the governemnt receives £1304 in VAT back.
So of the £2000 voucher given out by the government, at least 2/3 of that is likely to come back in car purchases that wouldnt otherwise have been made.
He means they are just knocking the vat off to get the £2000, so in real terms it only costs them £500.
It doesnt work like that.
Isn't that pretty much how we ended up in this mess in the first place?
"Hey, lets take out a big loan at a time when I'm likely to be losing my job, after all I couldn't afford (or get approved for) a 9.5k loan but 8k is within reach, clearly I am financially stable and know what I'm doing"
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Associate
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I think you are just confusing yourself.
Sensible people running older cars AT THE MOMENT might be tempted by this to get a nearly new or new car. Just because they have an old banger it doesnt mean they cant afford a brand new car.
My mother is a prime example of this, a sensible person who has an old crappy car but it does the job, sure she has plenty of savings but why waste it on a new car when she doesnt gain anything from it?
2 grand off may make her think......hang on a minute, my car isnt WORTH 2 grand to sell, so I will be getting money OFF a nearly new or new car if I scrap it.
errrrrrrr - you can walk in to ANY uk dealership and get a £2000 discount without much effort - I doubt that the discount will be over and above what the dealer gives anyway so its a non-starter anyway IMHO!
khushy
PS - the world car market will NEVER be the same again - buying a new car will be/already is a mugs game - drop like a stone - lovely!
khushy
PS - the world car market will NEVER be the same again - buying a new car will be/already is a mugs game - drop like a stone - lovely!
This is my prime concern with the scheme - isn't this what the government is supposed to be stopping us all from doing?
The dealer will still be working on the same margin, so if you can get £2k discount before this scheme, you should be able to get £4k...
But I think this deal will be better for those going for a nearly new car, rather than new which as you point out, depreciate probably more in the first year than you will get from the scheme.
LOL
so you believe that the Government is going to subsidise the car industry to the tune of £2000 per deal - wake up please!
Its a sales-ploy - ANYONE can get the £2000 discount/allowance against a new car - dealers are giving them away.
It will never ever happen.
khushy
so you believe that the Government is going to subsidise the car industry to the tune of £2000 per deal - wake up please!
Its a sales-ploy - ANYONE can get the £2000 discount/allowance against a new car - dealers are giving them away.
It will never ever happen.
khushy
the 2k would come from the government so the discount would be on top of what ever the dealer will give you as they will be able to claim it form the government.
The German government has done it and it looks to be working. Its much better then a 2.5% VAT cut if you ask me.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Well no, not really, you were asking about E92 330i's - if a £2k discount makes the difference between it being affordable and not affordable you cant afford to run it anyway.
atpbx is absolutely bang on the money. The scheme is very, very slawed.
I think a clause has been mentioned where you have to have owned said car for more than a year.
Plus it's simple supply and demand. If old bangers are suddenly in demand to be used as trade-ins on new cars, people won't be selling them for £200 any more, will they?
Soldato
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Slawed in your opinion, doesn't make it fact. It has worked in other countries.[TW]Fox;13887580 said:
Just because I am trading up to X car which happens to be expensive does not mean other people are. For me it isn't about affordability, the £2k scheme will just mean I can pick a few more options without feeling guilty.
But for others who aren't looking at E92 BMWs, i.e. people looking at trading up to newer small cars or run of the mill people trolleys, £2k could mean the difference between affordability now, rather than in a year or two time.
And that is the purpose of the scheme: not to get old cars off the road, but to encourage people to buy their car now rather than next year.
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