New scrappage scheme

[Flat4]

Government are apparently considering a new scrappage scheme for petrol and diesel cars in exchange for £6000 off an electric one 

https://uk.news.yahoo.com/boris-johnson-considers-giving-drivers-155147997.html

Sounds tempting but how much is your cheapest electric car these days? Is 6 grand off actually enough to move people away from petrol and diesel?

[crad]

problem with all of this is that it is far more damaging to build a new car than it is to simply keep an old smoker running for a while longer. until there is a viable alternative to having a car (cycle lanes, decent public transport etc.) then they will still be needed.

[Tamworthbay]

New Dacia electric is due soon at around £15-17k. If they gave £6k off that it would tempt a few I bet.

[Tadhg Tiogar]

[Wilko220]

Maybe time for everyone to start lobbying their local MP over the need for an age cut-off on any future scrappage scheme, to protect rare classic vehicles from being lost...

[busmansholiday]

What they should do is limit the scheme to UK built cars only. That way most of the money stays here.

[Tamworthbay]

25 minutes ago, busmansholiday said:

What they should do is limit the scheme to UK built cars only. That way most of the money stays here.

Sadly that won’t leave much choice at all soon ?

[theshadow]

not in my budjet,£30,so they can go swivel...

[captain_70s]

It's nothing about emissions and all about stimulating the economy. They want people spending dosh.

[sierraman]

On the whole, giving someone £6,000 off a £40,000 car isn’t going to cut a lot of ice with someone driving a 2007 Astra diesel. Another barnpot idea thought up by the middle class. 

[sierraman]

Just now, captain_70s said:

It's nothing about emissions and all about stimulating the economy. They want people spending dosh.

When companies are folding left right and centre and the concept of job security has gone out of the window the suggestion is to go out and commit to something you fundamentally cannot afford. ?

[busmansholiday]

^^^ Correct. Why would (as an example) I want to swop my 16 year old Panda that just costs fuel, tax etc, for a new one that will mean I have to cough up a couple of hundred quid a month (that I don't have) to pay off the loan.

 

[Out Run]

2 hours ago, Tadhg Tiogar said:

@maxxo

[1duck]

cheapest VW electric will be about 15k for an UP, taking 6k off that might make it an option for some.

[maxxo]

32 minutes ago, Out Run said:

@maxxo

sahara gold exclusive too!

my perfect combination, very very sad

[Volksy]

It's impossible for me, and anyone on my street to have an electric car. 

We all have no off street parking, and the road is that narrow that you can only, if you're lucky, park on the opposite side of the street. There are 50 houses. 

There is only three lamp posts so even if they were converted to provide charging points, there would be war! ? 

[sierraman]

33 minutes ago, 1duck said:

cheapest VW electric will be about 15k for an UP, taking 6k off that might make it an option for some.

Ideal for a family of four. 

[SiC]

4 minutes ago, sierraman said:

Ideal for a family of four. 

Colleague at work has a non electric Up and transports his family (Wife, Him and two children) around in one happily. 

[Kiltox]

42 minutes ago, 1duck said:

cheapest VW electric will be about 15k for an UP, taking 6k off that might make it an option for some.

Aren’t they nearly £19k but there’s currently a £3500 grant anyway?

[sierraman]

4 minutes ago, SiC said:

Colleague at work has a non electric Up and transports his family (Wife, Him and two children) around in one bent double. 

EFA. 

[Kiltox]

I’ll squash our 2011 i10 for a £9k e-Up without a moments hesitation.... can’t see it being the reality though 

[1duck]

2 minutes ago, Kiltox said:

Aren’t they nearly £19k but there’s currently a £3500 grant anyway?

yeah looks like you're right, i think the autocar article was out of date/promising a future car at 18k, anyway ignore all that shite.

This is what i want to come down to reasonable money : https://www.honda.co.uk/cars/new/honda-e/overview.html

[1duck]

5 minutes ago, Kiltox said:

I’ll squash our 2011 i10 for a £9k e-Up without a moments hesitation.... can’t see it being the reality though 

https://www.skoda.co.uk/new-cars/citigo-iv

17.5k at the moment, so that'd be 11.5k? i think i'd be tempted at that point.

[Kiltox]

Can’t see them offering £9.5k in grants, increasing the current £3500 to £6000 more likely. 

[Rod/b]

1 hour ago, sierraman said:

When companies are folding left right and centre and the concept of job security has gone out of the window the suggestion is to go out and commit to something you fundamentally cannot afford. ?

I said the same thing on twitter when this was floated a month or so ago. Encouraging folks to bin perfectly good motors and get wedged into long term credit and lease deals at a point that the economy is already battered is ludicrous. You’re effectively  propping up car dealers and importers income statements and transferring the risk to individuals, whose credit risk is underwritten  by the banks and finance companies. It’s irresponsible. When those individuals can’t afford the payments they go bankrupt and the finance companies end up with more bad debt.   For that fat bastard at Vertu to be plugging this by citing environmental issues is utterly disingenuous. And you can bet that the sales staff at the dealers will earn pennies per car too. 

[Squarepegroundhole]

The last time a proper scrappage scheme was introduced, all I saw it do was change the way manufacturers gave discounts. I very nearly scrapped my knackered Range Rover for a new Octavia.

It was very simply a hard case of “there’s 2 grand off the list price, there are no other offers”. I reckon prior to that I could have negotiated a deal very similar and kept the Range Rover. 

It was free advertising and it got punters into showrooms despite it being largely psychological. 

[Squarepegroundhole]

7 minutes ago, Rod/b said:

I said the same thing on twitter when this was floated a month or so ago. Encouraging folks to bin perfectly good motors and get wedged into long term credit and lease deals at a point that the economy is already battered is ludicrous. You’re effectively  propping up car dealers and importers income statements and transferring the risk to individuals, whose credit risk is underwritten  by the banks and finance companies. It’s irresponsible. When those individuals can’t afford the payments they go bankrupt and the finance companies end up with more bad debt.   For that fat bastard at Vertu to be plugging this by citing environmental issues is utterly disingenuous. And you can bet that the sales staff at the dealers will earn pennies per car too. 

Fiat is currently offering 12 months job loss protection! Do I detect desperation? Remember the 2008 financial crisis when people loaded up with houses and mortgages they couldnt afford?

[Rod/b]

4 minutes ago, Ian_Fearn said:

Fiat is currently offering 12 months job loss protection! Do I detect desperation? Remember the 2008 financial crisis when people loaded up with houses and mortgages they couldnt afford?

I’ll have a look at that, i bet it’s the start of the next PPI. 

[outlaw118]

I got put on "leave" and eventually dismissed for predicting the banking crash, and criticising the powers that be/were for piss-poor lending decisions and encouraging rampant debt levels.

I wish I'd walked into William Hill the day I got the order to clear my desk and FRO and put money on certain banking institutions going skint, I'd have been able to retire.

 

This shit still goes on; a couple of years ago I was interviewed by a lending firm who shall remain nameless about becoming a "debt manager", at a salary well above my current, even now.

Their lending practices and general lack of ethics meant I had to politely decline, even when they offered another £5k pa. 

And they were a "regulated" company. Asshats.

 

Oh, and PPI? I had a warning about under-selling that too.

[lesapandre]

This lending on vehicles is a big stress on the banking system - it's the next problem possibly as individuals default. And unlike housing - which is real estate in the material sense and in the UK with supply side limited to the existing stock + some new each year - all the surplus vehicles from the defaults have limited market and deprecated value. And they are RHD too.

A big push for electric could also skew the existing unsold and current production car stocks. There are a lorra lorra petrol vehicles both in stock and factories set to keep producing them.  So rather than 'saving' the car industry some subsidy might further depress parts of the market in the short to medium term.

Not sure presently many people will be wanting to take on more debt in the current situation.

But sadly expect more greenwash and new normal nonsense after Covid - as a way to ram through all kinds of craziness as companies lobby governments to shore up their balance sheets.

The 'balence of payments'  issue could rear it's head for the first time in decades if the UK service economy stagnates.