UK, Rules For Cash For Clunkers

[AVANTI R5]

The cash-for-clunkers scheme has officially kicked off, but who are the winners and losers..

THE scrappage scheme goes live today! And while the cash-for-scrap initiative is sure to stir up some showroom action, the small print inevitably means there’s winners and losers.

Despite the Government’s original claim that makers would not be able to exclude certain cars from the scheme, cars with waiting lists of four months or more are in fact exempt. Check out this week’s magazine – on sale 20 May – for a full run-down of the models effect by this Government u-turn. A finalised list of the conditions is below:

1. The scrapped vehicle must have been first registered in the UK before 31 August 1999.
2. The scrapped vehicle must be a passenger car or van weighing less than 3.5 tonnes.
3. The scrapped vehicle must be owned by the registered keeper for at least one year.
4. The scrapped vehicle must have a current MOT test certificate, or one that’s no more than 14 days past its expiry date at the time of placing the order.
5. The new car must be delivered by the manufacturer to the dealership within four months of placing the order.

Despite the stumbling blocks laid out above initial reactions from dealers have been positive and in favour of the scheme. Darren Robins, sales manager, Marshall Ford, Bury St Edmunds, said: “This scheme’s made a huge difference, the level of enquiries is right up. We’ve sold a couple of larger vehicles but it’s mostly the Fiesta and Ka that buyers are interested in. The vast majority are paying cash, not seeking credit.”

So if you’re in the market for a new car and ready to get rid of the junk on your driveway, there’s never been a better time to buy. Check out the best offers from each manufacturer by simply clicking here.

http://www.autoexpress.co.uk/news/au...eme_is_go.html

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[UKscooby]

My dad says he's going to take advantage of this. He's still driving my 97 Accord that I sold to him when I moved here 8 years ago. He's looking at the Ka.

[AVANTI R5]

Buyers might be queueing up to trade their old cars for new, but dealers fear that they are going to end up out of pocket.

Rogers, a Kia dealership in Plymouth, has been inundated with inquiries from motorists hoping to take advantage of the scrappage deal. Ford Escorts, Rover 200s, numerous small Vauxhalls and a Suzuki Swift have all been offered in exchange for £2,000 off the price of a new car.

But a sales manager complained that the rules have been tweaked so many times that he is seriously concerned about getting the Government’s £1,000 contribution.

He said: “We have had a lot of inquiries, mainly from the older generation looking for a small car to replace their old one. Our margins on these vehicles are already so low we are unlikely to make any profit and the paperwork is going to be an administrative nightmare “It is OK for the Government to keep rewriting the fine print, but if we make one small mistake in the paperwork we’ll never see our money, and we can’t afford to let that happen.”

The South Korean manufacturer specialises in offering value for money. The Picanto, the cheapest in its range, will cost buyers who take advantage of the scrappage scheme £4,150.
Mark Riddiford, principal dealer at a Honda showroom in Swindon, has been told that he cannot sell any vehicles under the scrappage scheme until details have been agreed between the manufacturer and the Government.

He said: “We have seen a 5 per cent increase in orders but the customers can’t collect until the manufacturer agrees with the government over VAT.

“We have had 15-20 inquiries but they haven’t necessarily translated into sales because of eligibility issues.
“Either the cars weren’t old enough, or they did not have current MoTs or they weren’t registered in their name. The criteria are quite tight.”

http://business.timesonline.co.uk/to...SS&attr=796841

[Spenk]

Nissan GT-Rs Purchased Via UK Cash For Clunkers Law Loophole

The problem with "Cash For Clunkers" legislation is they have holes big enough to drive a Nissan GT-R through them. In the UK, the holes are big enough to drive two GT-Rs through.

Scrappage laws like "Cash For Clunkers" are meant to stimulate the economy and cut down on greenhouse emissions by providing an incentive for consumers to trade in older, more environmentally-unfriendly vehicles for newer, more fuel efficient vehicles.

Unlike other European countries that hate old cars, the UK didn't bother to put limitations on price, consumption, or emissions of the cars purchased under the scrappage laws, so you can trade in your junker and get a Cadillac Escalade if you like. Two noteworthy hoons traded their cars in on a pair of Nissan GT-R's which, under the best possible conditions, could get 21 MPG if you could keep your foot off the yeehaw pedal. That consumption puts it in the highest tax bracket for emissions, something like the US gas guzzler tax. This is a perfect example of why scrappage or "cash for clunker" incentives are silly. The free market has already established a time honored life-cycle for a car, and interrupting it with an unnatural incentive for scrapping it before its time is just asking for trouble, especially if those incentives are paid for with tax dollars. Not to mention it puts sweet old steel in peril for no good reason. [Jalopnik]