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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