Treasury Is Blocking Mandy's Scrappage Scheme

[djm1972]

The depreciation on a new car is massive the minute it hits the road.

That statement is nonsense because nobody buys a new car and then sells it a minute later.

[Liquid Goldfish]

I'm conflicted

I think it's a terrible idea

but I was on the point of advertising my V reg supermini for £500 just as rumours of this plan started circulating a few weeks back and I've now held off to see what happens

[LetsGetReadyToTumble]

Any comments, mods or additions welcome.

The scrapping allowance of 2000 pounds, to be announced in the budget, is a nonsense because,

1) This is transferring yet more wealth from the poor to the rich. Those who can afford a new car will get subsidies from poor taxpayers who cannot afford one. Everything Labour do is usually to boost their vote. In this case, there are a lot more poor than rich, so not thought through, eh Alistair.

2) There are far more important things to spend taxpayers money on.

3) People who run 9 year old cars are unlikely to be able to afford a new one.

4) The greedy car industry will now raise their prices by the subsidy, or at least part of it.

5) I thought the government were concerned about global warming (yeah, as if) yet they encourage new cars purchase.

6) This money should be spent on what has become expensive public transport.

7) Most cars are imported so we are to subsidise the widening of the trade deficit, and pass our money to foreign manufacturers and countries.

8) The government should have less control over our society, and withdraw its tenticles somewhat.

9) Most cars are bought on credit, and fewer people can afford that at the moment.

10) People with 6, 7 or maybe 8 year old cars may now hold back until the vehicle is of correct age.

11) This is open to corruption. Somehow claiming on more than one old car.

12) The scrapping industry will probably jump on this and demand a 1000 pounds of the precious subsidy to scrap the vehicle.

13) This messes with the free economy. When Labour get involved with the free economy, things go tits-up.

14) Presumably the VAT on the subsidy will be paid when the car is purchased, so the government will have rigged another tax earner.

[ricbax]

Ha ha. Here in Newcastle I see plenty of people driving around in nine-year-plus old vehicles (that's "Y" reg and earlier, yes?) but somehow I don't think they'll all be queuing up to buy new vehicles, even with £2,000 off the purchase price.

No, it's just another hare-brained scheme dreamed up by an overprivileged muppet who "struggles by" on a six-figure salary and has absolutely no idea how Joe and Josephine Average live their lives.

Some have suggested this scheme may "help the environmental cause". How, exactly? Is, say, a 2000 model Toyota Yaris really that much more polluting than its 2009 equivalent?

And what if I were to trade in that "old" Yaris to get a £2000 discount off a SUV?