Wed
Apr 22 2009

Scrappage: it's £1k, not £2k

John McIlroy
Alistair Darling has just finished prattling on with the budget as I write this, but he’s already confirmed that British car buyers will receive £2000 if they trade in a car aged 10 years or over for a new vehicle. It makes sense to us – which is why Autocar has been one of several magazines lobbying ministers for the deal.



Except, of course, that it’s not really two grand from the government. Instead, Gordon and his chums are only stumping up £1000; a similar amount will have to be contributed by the manufacturers themselves. Darling didn’t mention this during his budget speech; I guess it must have slipped his mind.

Anyway, why should we care about this? Because a) it makes this package a much poorer deal for the troubled car industry (it’s meant to help the manufacturers, after all), b) it narrows the choice to those car makers who want to participate and c) it could encourage dealers to take a tougher stance on buyers who want to haggle when buying new motors.

After all, if there are conditions at the manufacturers’ end, then their reps could well be forced into playing hardball when it comes to sales negotiations. To the tune of about, oh, £1000, I’d say.


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About John McIlroy

Used to report on the WRC for Autosport magazine; jumped to Autocar in '05. Career high? Driving McRae's Ford Focus WRC. Career low? Crashing McRae's Ford Focus WRC. Former Autocar news editor, now Whatcar? editor.

Comments

James Ruppert April 22, 2009 1:48 PM

At least I will only be contributing £1K to this utterly stupid scheme. This is a fundamental misunderstanding of what constitutes the British Motor Industry. A waste of money and a great way to give to the Germans and all those manufacturers in the far east. I won't reheat old arguments I'll just call it stupid again.

trocadero April 22, 2009 1:48 PM

Why should anyone beieve anything Alistair Darling says anyway?

Timberwolf April 22, 2009 1:59 PM

In other words, less than the VAT on any car costing more than £6,600...

horseandcart April 22, 2009 2:04 PM

'Scrappage: it's £1k, not £2k '

- bit like Brown, two eyes, one functioning.

@James Ruppert April 22, 2009 1:48 PM

'At least I will only be contributing £1K to this utterly stupid scheme.'

- is that a sackable offence at Autocar, running down its pet project?

No matter James, looks like the nutter in the bunker has shafted even his media lackeys with this hokey-kokey £1K lash-up. Truly was there never a worse government...

The Apprentice April 22, 2009 2:17 PM

Apparently there is a clause though, Jacqui Smith will be allowed to trade in an empty bean tin for £20K off a Range Rover Sport.

Audi Tastic April 22, 2009 2:53 PM

An utter *** up that allows the Government to blame the lack of take up on the Manufacturers themselves, yet still have the headline grabbing offer.

They would have been better not to offer it at all than this disastrous effort.

andymartin75 April 22, 2009 3:23 PM

Mental note to self....

*Don't read John McIlroy's blogs anymore*

Firby April 22, 2009 4:04 PM

Greetings from the Green Vehicle Exchange Program..

We have solutions conceived for eliminating all of the problems related to vehicle scrappage.

They will be implemented soon in the US and our advice has been offered to the UK govt and industry associations.

We will prevent the increase in prices for the older cars from these plans, helping the lesser fortunate as opposed to hindering them withlimited supply.

We will avoid the decline in newer used car values that has resulted in Germany(30pc> in value)from demand decline.

We will make wider eligibility that will offer incentives to those with 5-10 year old cars that will be far more likely to participate financially in the first place.

We will remove many more of the real oldest higher polluters and not cause"negligible carbon reduction" benefits as a result of our better systems.

We have developed a system whereby the independent repair shops and parts suppliers will

benefit from the repair requirements of/for some of the better vehicles being kept in continued use rather than losing a large catchment of older vehicle that would have needed repair.

Our system is also designed to be perpetual for the long term avoiding other future market sales slumps later.

Should the News desire to investigate further I await the contact.

Environmentally, Economically, Opportunely and Stimulatingly Yours..

Fraser J.M. Young

Creator - Executive Director

Bobafari April 22, 2009 4:27 PM

With all due respect Mr Young, you are a frigging idiot.  Why are you distorting markets to encourage the consumption of luxury goods in the depths of a recession?  A Keynesian stimulus is great but should be targeted towards infrastructure that will improve businesses' efficiency.  This is a transparantly populist pre-election policy

Bobafari April 22, 2009 6:29 PM

Just when the Govt.'s trying to coax the saving rate up too... joined up policy it ain't

kdwilcox April 22, 2009 7:36 PM

The scheme is stupid,Brown and Darling are stupid no more needs to be said!!!!!!!

kd.

Monk April 22, 2009 7:36 PM

I bet the net cost paid by Mr customer will be no different than what they pay today on an average motor.

The discounts now available will disappear and the manufacturers will end up with an extra grand in their pocket. Watch the manufacturers re jig their ranges with new model specs that hide the list price increase( by approx £1k more than today.)

I hope all those foreign manufacturers and factory workers are very grateful to the British taxpayer.

Cynic - oh yes.

If they were truly interested in rewarding us poor punters with a deal they could refund £1000 directly to the first registered owner once they had proof they had scrapped an older car. This would leave us to carry on doing the best deal we could with the dealers and no double dealing and illusions.

The incompetence of this Government is only excelled by its corruption.

vidfletch April 22, 2009 8:15 PM

Farce. Why would anyone support this scheme? How many owners of 10 year or older cars can afford the extra for the new one anyway? Only a minority will either be already saving up for this or be in a position to afford the repayments. Even at that, it will only be those already driving very small cars that will do it (new drivers probably). As I have said before on here, my wifes 20 year old, £300 Jetta is now worth £2000 against the new equivalent which costs £15000! Who in their right mind is going to do that and make repayments on the extra £13000! Even the VW Fox would still be an extra £4500!

It won't work and taxpayers are paying for others "discounts". The "beleaguered" car industry is supposed to stump up £1000 for every car too!  

W124 April 23, 2009 11:26 AM

Forget it Jake, it's Chinatown...

Makes me want to jump out of the bloody window.

sirwilliam April 23, 2009 8:06 PM

I'm almost tempted to agree with James Ruppert. The reason I am tempted to agree is that the Treasury has realised that there won't be a great benefit to UK manufacturing (as a vast number of the cars that are bought within the scheme will have been imported).

On the other hand, the real point of the scheme - as the Haymarket/Dennis coalition kept saying, for example when a Guild member questioned them at the SMMT press conference - was to inject confidence into a struggling market.

Surely the scheme will not achieve this...

pSynrg April 28, 2009 1:54 PM

OK, I agree that the implementation could be a whole lot better.

But how is this NOT better than NOTHING?

Please come forward with your alternative suggestions. Autocar I expect take the easy  £2000 from the taxpayers stance... Anyone else have any ideas?

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