Monday, Jul 06, 2009
Yes, sure it has..
BBC News: Scrappage scheme helps car orders
Not really on topic, but a heavily spun fiction of the sort often produced by housing VI's. Do the sums - only one in ten new car sales has enjoyed the benefit of the scheme - what percentage of new car buying households have a car worth less than £1k that they'd be getting rid of, with or without the scrappage deal ? 10%, perhaps..?? All this does is to reduce the supply of cheap old cars.
Posted by uncle tom @ 12:45 PM (508 views) Add Comment
2 Comments
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1. shipbuilder said...
This scheme just sums up everything that's utterly wrong and screwed about our economic system, including how incompatible it is with any sort of sustainability.
2. kruador said...
The amount of money in the scrappage scheme pot can only finance 300,000 car purchases (capped at £300m, £1,000 per car, you work it out). The market is already down more than 300,000 new cars on last year in the first six months: from January to June 2009, 924,955 new cars were registered, compared to 1,247,479 for the same period in 2008. Figures from smmt.co.uk's June release.
So, it's a crap stimulus. Let's look at the other angle, emissions (both toxic/smog-forming and greenhouse gases). There are 4.3 million cars more than 12 years old on the road. Replacing fewer than one tenth of those will have virtually no impact whatsoever. Again, data from SMMT.
This scheme needed to be about ten times bigger and to be applicable to any scrappage, not just to buying new cars. By enabling an owner of a junker to scrap their car and buy a used one a few years newer, you support the whole market. Instead the scrapper has to find about £10,000 to buy a new car. If they're already driving a 12-year-old car, how likely is it that they have that kind of money?