Car scrappage proposal FAIL
The Budget proposal I referred to as “damn stupid” has, as I predicted, will fail. With the understated headline “car scrappage scheme ‘unpopular’”, the BBC reveals that
70% of respondents [to a survey] said the scheme was not generous enough, and overall 81% said they would not be taking advantage of it.
The problem with this proposal is that it simply doesn’t add up. We’re in the middle of a recession, when pretty much everyone is strapped for cash, and those who do aren’t flashing it around on luxuries such as a new car. A £2,000 discout isn’t enough.
Yet what makes this a truly damn stupid proposal is that the £2,000 discount can only be claimed if you have a 10 year-old car that you scrap. The problem is that people who have cars that are 10 years old or older probably don’t have enough money – even with the £2,000 discount – to afford buy a new car, and almost certainly not to insure it as well!
They government certainly didn’t think this through. But then again, ministers don’t have a clue what the general public go through. After all, they either have a government car and driver or, as MPs, can could pass much of the costs on to us through their expenses.
I would be quite surprised if this damn stupid scheme got any takers at all.
I’m surprised that the figures came from the BBC as it had a man from the SMMT on “Today” (Business news) about 10 days ago, saying that he was highly optimistic of the scheme. He didn’t give any rationale and I suspected that he had been asked to follow the general BBC line of “talking up” business optimism.
My biggest objection to this is that this government has spent 12 years demonising the motor industry, almost making it an offence to own a car and criminalising trivial highway rules; then they expect that the population at large will suddenly forgive them that – and the £40+ billions in annual road taxes – to obtain (probably) a bank loan to fund a highly depreciating asset.
Alastair Darling used to say, when on Edinburgh Council, “I hate cars” – and he’s not a leopard who’ll change his spots.
Pensioners gain.
They have some disposable income.
They often have a 10 year old car.
They can buy a 6-7,000 mini hatch. Thats just a 5k outlay for a new car. Or £500 pa till the next one.
They gain on trading in their inefficient Rovers and Novas, saving n the new low £35 annual green tax disc, 70 mpg and low servicing costs.
And they are the target market as they probably needed an incentive to go out and buy.
Meanwhile, myself with a 6 year old car, that has lost 60% of its price over 3 years, cannot seem to get a decent deal on a new car, and is getting a lousy trade in price too.
So still putting off that purchase.
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