Wed
Apr 29 2009

Scrappage Wonderland

James Ruppert
You may not be surprised to learn that not everything is rosy with the scrappage scheme. There is plenty of confusion, and few people are clear as to just how much they should be paying, or saving, or even where the money is actually coming from.

I know this because I have been talking to someone at the blunt end of it all at the moment, Richard Sanders, who runs Drive the Deal.com. His and other car brokers have been offering the sorts of discounts in the past few months that make the scrappage offer look just a little bit stingy. The best I can do is let Richard tell it like it is…



“We are inundated with enquiries about scrappage. The manufacturers haven't yet told their dealers what they can work with discount-wise, but I get the impression that most of the manufacturers are poised to claim that they are giving more than £1000 off the list price anyway, so that's their £1000 contribution, and the dealers can give the other £1000 that is from the government.

“I am not even sure whether all the back-end bonuses and support etc will be available to use in conjunction with the scrappage money. This is a farce. Frankly the government ought to have carved out the scheme in advance with the industry, and insisted that new money must be offered by the manufacturers in return for taxpayers’ money being used to generate car sales.

“Anyway, hopefully in the coming days we will know what we can offer people. But there is no shortage of people who think they can buy a £6000 car off our website and knock off £2000 to make it a £4000 new car! I imagine people are going to be disappointed when it becomes clear what will actually be available for them.”

Nothing I can add to that really.

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About James Ruppert

Used to sell BMWs, but he's no yuppie; has a '64 Mini Cooper in his garage and a '57 BSA Bantam in his house. Has bought and sold hundreds of used cars, and he isn't finished yet.

Comments

TegTypeR April 29, 2009 3:29 PM

I could rant on about this and the fact yet again the government has gone off half cocked again, but it's pointless.

Lets make sure Richard Sanders and the like stand up an publicise how much of a louse up this all is!

scrap April 29, 2009 3:33 PM

Had the government just said "We'll guarantee you a grand for your old smoker if you trade it in for a new motor", all this confusion could have been avoided.

At the end of the day, though, either the deal is attractive enough for the customer to sign, or it's not. If £1k guaranteed trade-in plus a further £1k discount is enough to stimulate sales then all well and good, if not then they will have to lower prices further. Seems pretty straightforward to me.

Surely the trade has the incentive to make this work, rather than bleating about it being a "farce"?

The Fop April 29, 2009 3:47 PM

The problem is very simple.  The government wanted to announce a £2k saving - that's about the amount other countries have done (Germany, for example) and therefore what the media was expecting.  The Treasury said no - so they ended up with an eleventh hour smokescreen where they promised money from industry without pre-agreeing it.  However, the reason this is needed is that the car industry is on it's knees.  In many cases on small cars the manufacturers are probable making less than a thousand pounds a car profit, so to add another thousand discount would mean selling cars at a loss.  That would mean that all the extra sales resulting from the programme would make their position even worse than it was already.  There is no way they can go ahead on that basis.  The whole thing has been bungled - simple as that.

Audi Tastic April 29, 2009 7:15 PM

Vote Tory.

kerrecoe April 29, 2009 7:44 PM

Yeah, then everything will be much better...

We're f u c * e d mate, whichever way we turn.

vidfletch April 29, 2009 10:55 PM

Rewind back to 1997. Vote Labour! They are all as bad as each other. David Cameron can't even chain his bike up properly and there's calls for him to be in power?!?!?!?

noluddite April 30, 2009 7:26 AM

Isn't there any proper car news at the moment?

mountain man April 30, 2009 9:25 AM

Gordon does it again ! Claims to be giving motorists £2000, yet is only offering £1000 plus whatever the Manufacturer is willing to give, he again missed the plot that the manufacturer  was already throwing every penny he could at the cars in a failed attempt to "Move Metal"

Just to make sure the deal does not cost Gordon, he now adds to the small print "the scrap car must have a long MOT !"

Gordon claims this will reduce greenhouse gas yet he will give this  same generous allowance to the man who swops his Mini for A Range Rover v8 petrol or any other similar Kensington Tractor.

mountain man April 30, 2009 9:28 AM

Sorry have just read my comment, Its not gordons money, its ours that he is using as always.

ColinS April 30, 2009 10:24 PM

I've heard that all "scrapped" cars must be shipped to a location in Scotland and that Gordon's just registered "GB Bargain Motors" as a business, guess he's making plans for life after No.10.

beemerboy58 April 30, 2009 10:33 PM

If you want to buy a new car and get a good discount, go to Broadspeed or Drivethedeal and put your old 'un in the Autotrader. Brown is using the motor manufacturers to prop up his scheme...like he does with local government on most other things when the council tax keeps going up. Doesn't he realise that the majority of the public are now on to his con tricks?

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