Scrappage Scam Extended

[Joe T]

Anyone actually know that the most powerful country in the european union has a new prime minister? The BBC has decided that it isn't important enough, and is concentrating on increasing house price instead. This country is a ****ing joke.

Actually it has the same prime minister it had before


But enough politics...

 

[Vigoro]

Wow cool means i can go trade my clio i for a ummmm new clio that will do everything about aswell as mine does at the minute

Oh and for the 1.2 save 10g/km on co2 emissions of course

 

[spaz]

This scheme worked in our favour because my mum was looking for a new car before the scheme was announced, then all of a sudden my, pretty much beyond repair mr2, was worth 2k instead of £200 at the very most, so on top of selling her current car she was able to put another 2k towards a Korean failbox, worked out to about £1.5k to get a brand new car in the end I think.

If my MR2 was still servicable I wouldn't have thought about letting her use it though.

 

[Skeeter]

Wow cool means i can go trade my clio i for a ummmm new clio that will do everything about aswell as mine does at the minute

Oh and for the 1.2 save 10g/km on co2 emissions of course

^^This is the full extent of the thought proccess of people who take up this scheme. They seem to forget that it requires a large sum of money or debt to complete the deal! lol.

Keep current car, or scrap and buy new car at cost of £7000 I had no reason to spend, BUT I GOT £2000 OFF!!! WOOOO

 

[lambda]

Worst of all, this scheme is just producing an artificial spike in demand. The instant it ends car sales will fall through the floor again and we're back to square one.

We will be a worse state than if things were just left to correct themselves. History has taught us that state intervention always fails in the long run - not that it matters to Gordo.

The problem is simple, new cars are too expensive. New car prices are inflated massively, and everyone knows that buying one is financial suicide. The only people that want to touch mainstream cars are leasing companies, and even they have backed off, and started to extend their lease terms (less demand). The ease of credit was the only thing allowing new cars to be bought by the general public, now that over, demand has fallen massively. Loads of people also withdrew equity gained from the housing bubble to pay for these overinflated things, and its safe to say, thats not happening again for the forseeable future.

So instead of dealing with the problem, the government has decided that the reduction of profits of NON-UK COMPANIES is a fundamental issue that affects everyone in our country, and we should compensate the foreign shareholders.

How much does anyone want to bet that the major car manufactures had a few words behind closed doors to secure this deal.

 

[Camalot]

How do people get new cars every 3 years? My uncle does this, i dont quite understand it.

Do they just get a brand new car, then trade it in for another new car? Surely thats more expensive

Guys at work keep telling me to scrap my fiesta (dying engine, prob wont pass next mot) for a new car. I told him he is insane but the whole idear of it has got me thinking how others play it?

How exactly does the finance side work if you keep trading in the car every 3years?

 

[Participant]

Our N reg Polo had 105k miles on the clock, needed a new exhaust, was due another cambelt change, was a bit smokey probably due to valve seals, and would sometimes take 15 minutes to start in the morning.

This wreck was worth precisely nothing, or potentially £100 with an MOT. However, thanks to UKGOV, it became worth £1000 to the government and £1000 to VWUK. This in conjunction with online deals and the high demand for my new car, means that I could still sell the car for more than I paid for it, and it has 3k miles on the clock.

So thanks UK taxpayers, next one's on me! I guess all the people that are providing only one side of the argument are failing to realise that it's beneficial to certain groups of people, and are probably a bit annoyed that they cannot afford a decent new car under the deal.

 

[Kmodo]

How exactly does the finance side work if you keep trading in the car every 3years?

I don't really know, I guess they are just constantly paying money for the car as opposed to just paying the car off?

 

[Kitchster_uk]

Stupid scheme but hey, it lets everyone keep up with the Jones's, encourages people to get into unsustainable debt to do it, whilst getting rid of perfectly servicable items and replacing them with expensive ones on finance.

Sure this rings a bell....

 

[Skeeter]

Our N reg Polo had 105k miles on the clock, needed a new exhaust, was due another cambelt change, was a bit smokey probably due to valve seals, and would sometimes take 15 minutes to start in the morning.

This wreck was worth precisely nothing, or potentially £100 with an MOT. However, thanks to UKGOV, it became worth £1000 to the government and £1000 to VWUK. This in conjunction with online deals and the high demand for my new car, means that I could still sell the car for more than I paid for it, and it has 3k miles on the clock.

So thanks UK taxpayers, next one's on me! I guess all the people that are providing only one side of the argument are failing to realise that it's beneficial to certain groups of people, and are probably a bit annoyed that they cannot afford a decent new car under the deal.

If you ever have to write 3 paragraphs to justify a decision, it probubly wasnt the best decision ever made.

 

[Kitchster_uk]

Our N reg Polo had 105k miles on the clock, needed a new exhaust, was due another cambelt change, was a bit smokey probably due to valve seals, and would sometimes take 15 minutes to start in the morning.

This wreck was worth precisely nothing, or potentially £100 with an MOT. However, thanks to UKGOV, it became worth £1000 to the government and £1000 to VWUK. This in conjunction with online deals and the high demand for my new car, means that I could still sell the car for more than I paid for it, and it has 3k miles on the clock.

So thanks UK taxpayers, next one's on me! I guess all the people that are providing only one side of the argument are failing to realise that it's beneficial to certain groups of people, and are probably a bit annoyed that they cannot afford a decent new car under the deal.

WOW - what a good deal!!! You spent how much on a car? I may be wrong here, but if it's a new Polo, we are talking arond £10-£12k. Shocking idea: Don't scrap the old one, get another second hand one for £4-£6k and save EVEN MORE money?

 

[lambda]

So thanks UK taxpayers, next one's on me! I guess all the people that are providing only one side of the argument are failing to realise that it's beneficial to certain groups of people, and are probably a bit annoyed that they cannot afford a decent new car under the deal.

You may think that you are getting a good deal, but the reality is that if the market pricing was allowed to move an equilibrium position, the price of the new car you have bought with the discount is still hugely overpriced.

The whole fregging world knows this, yet the problem is being avoided. Its like all those people that spend £250k on a 1 bedroom flat. At the time, they thought it was a fair price. But only years later after prices were allowed to fall to meet demand, then it dawned on them they they are actually only worth £150k.

 

[[TW]Fox]

Our N reg Polo had 105k miles on the clock, needed a new exhaust, was due another cambelt change, was a bit smokey probably due to valve seals, and would sometimes take 15 minutes to start in the morning.

This wreck was worth precisely nothing, or potentially £100 with an MOT.

Scrappage works when people like yourself delude yourselves. An N reg Polo with MOT is worth CONSIDERABLY more than £100!

 

[Dolph]

I'm somewhat indifferent on this, as state support for an industry going through a tough time due to issues outside of their control, the scrappage scheme is a pretty good model to follow (does not distort market forces excessively, does not involve giving failing companies money and leaving more successful companies alone).

Whether it is a good idea for people to actually use it is another matter entirely.

 

[Participant]

If you ever have to write 3 paragraphs to justify a decision, it probubly wasnt the best decision ever made.

So by Skeeter logic, anyone that has ever written three or more paragraphs when trying to explain their actions, probably made a bad decision? That is a life lesson I will take with me, cheers!

However, I'm trying to elaborate on why the scrappage scheme worked for me. Next time I shall attempt to write more concisely so that it is easier for you to digest.

WOW - what a good deal!!! You spent how much on a car? I may be wrong here, but if it's a new Polo, we are talking arond £10-£12k. Shocking idea: Don't scrap the old one, get another second hand one for £4-£6k and save EVEN MORE money?

Didn't want a £4-£6k second hand car though . What is that, the optimum range of second hand car values or something?

Scrappage works when people like yourself delude yourselves. An N reg Polo with MOT is worth CONSIDERABLY more than £100!

Clearly you failed to read the part about the state of the car and the imminent increase in running costs.

 

[Camalot]

What car you get Rob? Whats the finance like?

 

[lambda]

I'm somewhat indifferent on this, as state support for an industry going through a tough time due to issues outside of their control, the scrappage scheme is a pretty good model to follow (does not distort market forces excessively, does not involve giving failing companies money and leaving more successful companies alone).

Whether it is a good idea for people to actually use it is another matter entirely.

Fair points. A scrappage scheme is a good general model, but restrict it to British companies only. Why should the british tax payer compensate foreign shareholders during a recession?

 

[Participant]

What car you get Rob? Whats the finance like?

VW Golf MkVI 1.4 TSi Petrol 160PS DSG. The finance is zero as we'd been saving up from having an old Polo for ~four years. Fact is even if the Polo had been in mint condition, it still wouldn't have been worth £2k. Getting ~£5k off the retail price made the new route worth it to us.

I could sell the car right now in less than a day for a profit. Thing is I like the car so I don't think I'll bother.

Here's my boring people's car! Better built than the A3 .

 

[jamoor]

Our N reg Polo had 105k miles on the clock, needed a new exhaust, was due another cambelt change, was a bit smokey probably due to valve seals, and would sometimes take 15 minutes to start in the morning.

This wreck was worth precisely nothing, or potentially £100 with an MOT. However, thanks to UKGOV, it became worth £1000 to the government and £1000 to VWUK. This in conjunction with online deals and the high demand for my new car, means that I could still sell the car for more than I paid for it, and it has 3k miles on the clock.

So thanks UK taxpayers, next one's on me! I guess all the people that are providing only one side of the argument are failing to realise that it's beneficial to certain groups of people, and are probably a bit annoyed that they cannot afford a decent new car under the deal.

I thought to qualify for the scrap scheme you had to buy the car at list price?

 

[Participant]

I thought to qualify for the scrap scheme you had to buy the car at list price?

Nope.

Another point I'd like to raise: people like [TW]Fox seem to believe that the best solution for everyone is to buy a second hand four year old wreck for £10k. Hence ridiculous comments such as

'Because lets face it, skint people who run a banger because its all they can afford cannot afford a new car even with scrappage'

What Mr. Balanced Motoring Journalism UK 2009 fails to realise is that the scrappage scheme isn't designed to help poor people; it's designed to help the UK car industry, of which vertically integrated industries make up a vast proportion, not to mention the people that are directly employed in UK factories by the likes of Toyota and Jaguar Landrover.

Perhaps he doesn't care about UK car factory workers. Fine. But he should still take it into consideration in his one-sided rants.