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Discussion in 'Current Events' started by iBecks, Apr 22, 2009.
This will be interesting. £2000 off a new car for trading in an old car over 10 years old.
Watch sales in £100 quid bangers explode.
Methinks they didn't think this proposal through.
The Japanese have a better model (or had, at least). Just tax the bejeezus out of any car older than the desired point (it was 3 years at one point, IIRC). Keeps the industry replacing everyone's cars regularly, ensures the latest safety & emissions equipment is in place, and provides a ready source for cheap, late model used cars to Americans stationed over there.
I was thinking exactly the same.
What I'm trying to get my head around is this;
Example: Retail Price of a new car is £10,000 this includes £1300 VAT at the current rate of 15%.
Now the government are giving £1000 towards this incentive and the car manufacturers are to match that.
So this is a great way for the government to stimulate car sales and VAT payments from the sales of the new cars and end up £300 better off.
Pretty sure there will be a clause to prevent you buying a cheap banger to trade in the next day.
Also this £2k is off list price. Right now if I walked into a dealer to buy a, say £20k, list price car I'd expect more than £2k discount with semi-decent bargaining. All that will happen is people turn up with their banger to trade in and the dealer will say that there is no discount off list for them so they get the banger and sell the car for more than they would otherwise!
How many people who actually own a car over 10 years old will be buying a £20,000 car though?
It's interesting though, I'll have to see what finance deals are offered on some of the cheaper new cars so I can get rid of my 13 year old Mondeo.
I've no idea to be honest: I've never bought a new car. I simply chose a figure that seems reasonable. I would accept that I seem to have overestimated as the average price of a new car in the UK is about £14000. Even on a car of that price I'd expect that an average person would be able to negotiate somewhere close to £2k off the sticker price...
I am not entirely sure about this, but I thought the deal was aimed at people who have owned a car for 10 years or more, not for people who own cars that are 10 years old or more. That is, it will not be possible to go out and buy an old banger, then trade it in under the terms of the deal.
In Turkey - they cut all the taxes on new cars - there is now a waiting list for some models.
All the reports I have read are for cars that are 10 years old or more, not where someone has owned a car for 10 years or more.
Sounds like a plan, however our government have done it in away to stimulate car sales and VAT payments, so they appear to be giving £1000's away but yet raking in the VAT on the new car sales.
Methinks they did. They're not going to let you buy up old bangers to get £2k of a new car. The government may be incompetent...but they're not quite that stupid. The full details are not published yet, but that's such an obvious, massive loop hole that they will have seen it coming.
The could of. It could easily be they are doing it for pollution reduction reasons. Lets face it. Cars made today cause a lot less air pollution then cars 10 years ago.
The state of Texas has had a similar program in place for years for cars over a certain age and that fail emission test. The state would provide X amount of money for a new car. This would get the polluting car off the road.
But those 10 year old cars already exist. Does manufacturing a brand-new car cause less or more pollution than continuing to use an existing 10 year old car?
because they saw how it worked in other counties who did introduce such programs already
new car sales go up regardless of logical points why they shouldn't with such deals, because after all people aren't logical
also i suspect they have a requirement on how long you had to own the car before scrapping it
ranges are somehow around 1-3 years in other countries
on the other side it just delays the fall-down a few months into the past
You run a £500 banger for a reason, either you can't afford anything more expensive or you don't give a toss about cars and just want some cheap transport.
It's a huge jump to go from £500 to £14000, but £2000 off the £6000 list price of a Kia Picanto for example will make it more realistic.
Methinks they did.
I stand (sit!) corrected.
Who'd have thought it? This useless bunch have closed a loophole to stop us proles from profiteering. I was preparing my "It might be immoral, but I didn't break any rules" argument.
I had the foresight to buy my old banger 3 years ago.
The government knows a hell of a lot about you, including what cars you have, and for how long.
Of course they do.
Car Tax, MOT and not forgetting registration information from DVLA (Driver and Vehicle Licensing Authority) which is a government department.
For once the government will do something that benefits me!
I think I will be taking advantage of this by getting rid of my 18 year old VW polo which I got from my parents 3 years ago and buying a new Ford Fiesta, they say those cars are great. Great timing too, the exhaust fell off the Polo the other week and a new box + other parts is over £60, plus it needs an MOT and tax by the end of May (last year it cost over £300 to pass the MOT and will probably be more this year). Should save some money in the long run there.
This has been working well in Germany. It seems it helped Opel a lot.
For me I own a 6 yo car that is paid for. It averages 20mpg. Would love to go "greener". Would love to get closer to 30mpg. A decent tax credit might make me make the move....
What's also important in that Budget Report quote is the March 2010 date. That means if you buy a £200 car today, you can't just convert that into a £2000 discount on a new car in 1 year, since there are only 11 months remaining in the year. You need to own the car for 12 months to take advantage of this deal.
I wrote a load of crap, so I deleted it