Government Scrappage Scheme
- Thread starter DampCat
- Start date
What flawed aims? The aim of the scrappage scheme is to give a boost to the car industry. How is it possible to do this if a significant number of car sales are second hand? That does *nothing* for the motor industry, outside of parts.
By shifting those purchases to *new* vehicles, instead of old, the motor industry gains a significant boost in cash flow.
That's all it is aimed at doing. That's it. Nothing else. If it's accomplished that, it's a success. To accomplish that, it only needs to increase the sale of new cars. It has done that.
By shifting those purchases to *new* vehicles, instead of old, the motor industry gains a significant boost in cash flow.
That's all it is aimed at doing. That's it. Nothing else. If it's accomplished that, it's a success. To accomplish that, it only needs to increase the sale of new cars. It has done that.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
I'm sorry, but what?
How does the sale of a used car do NOTHING for the motor industry outside of parts?
Did you really just say that?
Yes, I did just say that. The sale of a second hand car does nothing for the manufacturers of vehicles. Dealers/Sellers get some cash, but that's it.[TW]Fox;15126861 said:I'm sorry, but what?
How does the sale of a used car do NOTHING for the motor industry outside of parts?
Did you really just say that?
How do the factories benefit from a used car sale?
How do the factories benefit from a new car sale? We make very few cars here in the UK and most of the cars we DO make in the UK are of the sort which do not really benefit from scrappage. Our main skill is small volume sports cars and volume luxury SUV's. These are the home grown, home designed cars (Yes, I know LR is foreign owned but R&D and production are done here). Nobody is trading in Scrappage cars for an Ultima GT-R or a Range Rover Vogue, or a Jaguar XF.
One of the points many of us have been making is that the main beneficiaries of this scheme - Kia, Hyundai et al, have NO production facilities in this country and make NO cars in this country! There is not much more benefit to our economy of somebody buying a Hyundai i10 as there is of somebody popping to Bobs Used Cars and buying a tidy low mileage Zafira.
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Increasing consumer spending in a time where cronic overspending by the public has left us with massive personal debt levels sounds like a fantastic idea.
Why help the car industry anyway? What right do they have to be "saved" by extra incentives? Demand drops, so should supply or the price of the vehicles. Every other industry's having to deal with it. Innovate or you're out.
Hell, they bang on enough about encouraging public transport usage and yet on the other hand they're encouraging new car sales.
99% sure the money would be better off funding needed improvements to roads/public buildings etc that'll put money into the pockets of the engineering contractors and also benefit the general public.
My opinion anyway.
Increases sales for suspension/tyres. Sod saftey, speeding kills, didn't you know?
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I do actually agree with you about people scrapping perfectly serviceable cars; I am not a great fan of the consumer mindset. However, I am not entirely convinced that many people do actually scrap valuable "mint" cars.[TW]Fox;15126765 said:Not at all. We just hate to see perfectly working, perfectly serviceable nice cars being crushed. It just seems so wrong, especially when they are being crushed to achieve flawed aims.
I dont expect you to understand because your thoughts are so clinical and black and white you make me seem like a balanced individual
I think that the most significant difference in our attitudes is that cars have a particular fascination for you whereas I (by virtue of being clinical and seeing things only in black and white) see cars primarily as a convenient means of transport.
C'est la vie, vive la différence!
I'm not really sure what else I need to do to convince you that this IS happening. Take a walk around a breakers yard or, if you can't be bothered (And I dont blame you!) pick up something from the specialist press in Smiths and you'll see the evidence you need. Several magazines have done Scrappage features where they've taken a stroll around a local breakers yard finding scores of really nice, serviceable perfectly operational cars.
Fox, I hate to say all your points here bar about one I think is you getting emotional about a good car being scrapped.
tbh, who cares if a good car is scrapped ?, the goverment just want to kick start consumer spending, much like the VAT decrease a while back
One of your arguments is you could have negociated a 1.5k discount anyway, but where does that 1.5k come from ?, from the poor dealers pocket. This way the dealer still retains good margins which is good for the industry.
The goverment wanted to put 50odd billion into the car industry, and what better way than dangling a carrot to make people want to 'upgrade', and even if the car is a hyuniaodawoowoo it's still a good thing. Claiming that people shouldn't upgrade to these cheaper brands is nothing but badge snobbery....
I'm certainly not gonna shed a tear because some 10 year old worn out high milage banger is going to car heaven.. and lets face it, most cars being scrapped are past their best (ie with a value on the market / trade in of less than 2k)
tbh, who cares if a good car is scrapped ?, the goverment just want to kick start consumer spending, much like the VAT decrease a while back
One of your arguments is you could have negociated a 1.5k discount anyway, but where does that 1.5k come from ?, from the poor dealers pocket. This way the dealer still retains good margins which is good for the industry.
The goverment wanted to put 50odd billion into the car industry, and what better way than dangling a carrot to make people want to 'upgrade', and even if the car is a hyuniaodawoowoo it's still a good thing. Claiming that people shouldn't upgrade to these cheaper brands is nothing but badge snobbery....
I'm certainly not gonna shed a tear because some 10 year old worn out high milage banger is going to car heaven.. and lets face it, most cars being scrapped are past their best (ie with a value on the market / trade in of less than 2k)
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Yes! Let's increase personal debt further!
The VAT decrease is a totally different subject. Something that I can't be bothered to waste time talking about, as it's already starting to sound like a broken record in here.
maybe the records not broken..
you gotta see cars as just things people buy not something to get upset about when they goto car heaven
hey dont throw toys outta pram
i have my views just as you do m8... i think it's a good idea, and my own opinion even after reading all other posts against remains unchanged.
is that a bad thing ?
you know what, I dont think I've ever said 'i cant be bothered to entertain you' even on the web to anyone, it's pretty rude tbh
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Friend of mine recently scrapped his PUG 106 for a Golf 1.6 Diesel, Dealer gave him 4k discount towards the new car, he probably of negotiated 2k discount anyway, but the 2k from scrappage was certainly a lot more than he could have had for his 106.
His 106 was in such bad condition he would have been lucky to get 50 quid for it as scrap metal.
His 106 was in such bad condition he would have been lucky to get 50 quid for it as scrap metal.
Is it really too much to ask that people educate themselves on something before forming an opinion? Half the scrappage allowance comes out of the dealers margin - they don't 'retain good margins' at all.
Me neither. Good job we are not discussing worn out high mileage bangers
you gotta see cars as just things people buy not something to get upset about when they goto car heaven
When a perfectly fine, 60,000 mile car is thrown to the side it's an incredible waste on resources. It cost time, money and huge amounts of energy to create that car, and it's dumped for the sake of £1000.
Where's the logic in it? You don't buy a pint of milk, drink half, throw the rest away and then buy another. You think "hey, wait, what a waste of half a pint of milk. i'll finish it before i get another."
At the very least there should be some additional scheme that allows inspectors to assess these category B write offs and use them for some benefit driven "car for needy" scheme. There are plenty of people out there who would appreciate the cars i saw in the yard at the start of this topic. Even me.
The Scrappage Scheme isn't solving a problem, it's just distracting you from it by waving some money in your face, and creating an entirely new one behind the scenes.