UK Govt Scrappage Scheme!

[PassatB6]

Why can't we do this here?$8,000 off the price of a new VW.

From the UK*

"Volkswagen are pleased to announce some additional contributions to the Government’s car scrappage scheme.

*If you buy a Volkswagen*Golf S*model you will get a total of £3,950*saving off*diesel engines and £3,250 saving off petrol engines. This saving includes the £1,000 incentive from the Government.* This means you can now buy a new Golf S 1.4 80PS 3dr from £10,335 in conjunction with the government scrappage scheme. (Golf SE, GT, GTI and GTD models will continue to get the standard £2,000 scrappage scheme incentive). * Volkswagen are also offering a total of £4,250 saving off all models in the*Passat range, including Saloon, Estate and CC.* This saving includes £1,000 incentive from the*Government.* This means you can now buy a new Passat Saloon from £12,190 in conjunction with the government scrappage scheme. * A total saving of £3,250 is also available on*all Golf Estate, Golf Plus and Touran models." *

[phaeton]

I think because we're running dry on funds

[team_v]

I think because we're running dry on funds

Exactly!

The new sales will provide stamp duty and Government charges (registration, new plates etc) but i don't know if it would neutralise and provide a gain on the investment they would put in.

It could also be the fact that most of the cars solf in EU would be made in EU.
If you look at how many of the cars sold in Australia are actually made here, it is a small amount compared to the total car sales.
If you provide a scrappage scheme in Australia, the money would be going overseas rather than staying in Australia.
Also most people are now looking at buying small/economic cars. How many australian made small economic cars are there? Answer, none!

[Tim]

there was a thing on the news a little while ago about a similar scheme in germany.
The gov did it to try and save the local auto industry. Its working to sell a lot of cars. The only problem was that too many people are rushing out to buy the cheapest korean built cars cos they are stupidly cheap after the incentive discount.

It was said to be costing the gov billions of dollars that our gov dont have and I dont think the second hand car market would enjoy another slap in the face either.

[PassatB6]

This is about buying a German car in the UK so local manufacturing is not the issue. In Germany there was a bonus for if you traded a car older than I think 12 or 13 yrs. Its a great way to get old polluting cars off the road and stimulate the auto industry. The money is directed to an industry which is probably better than giving everyone $900 to spend on whatever takes their fancy.

[team_v]

This is about buying a German car in the UK so local manufacturing is not the issue. In Germany there was a bonus for if you traded a car older than I think 12 or 13 yrs. Its a great way to get old polluting cars off the road and stimulate the auto industry. The money is directed to an industry which is probably better than giving everyone $900 to spend on whatever takes their fancy.

From memory, i believe the scrappage program was part of the 2008 European Union Stimulus Package so it was "local manufacturing" to a degree over there.

It is a great way to get rid of old, polluting cars and provide an incentive to get a newer, greener car.
This would cause an enormous glut int eh second hand car market though, as someone stated above.

Unfortunately the Australian automotive Industry is pretty much screwed and the government keeps throwing money at it to keep them afloat, so targeting the automotive industry may be a good option for stimulus but almost all cars are made overseas anyway so the economic benefit would go overseas.

[PassatB6]

From memory, i believe the scrappage program was part of the 2008 European Union Stimulus Package so it was "local manufacturing" to a degree over there.

It is a great way to get rid of old, polluting cars and provide an incentive to get a newer, greener car.
This would cause an enormous glut int eh second hand car market though, as someone stated above.

Unfortunately the Australian automotive Industry is pretty much screwed and the government keeps throwing money at it to keep them afloat, so targeting the automotive industry may be a good option for stimulus but almost all cars are made overseas anyway so the economic benefit would go overseas.

Point taken but it applied to cars made outside EU as well, Japanese, Korean etc.

[team_v]

Point taken but it applied to cars made outside EU as well, Japanese, Korean etc.

I know, i think it is a good system to have but people sometimes get blinded by all the good and fail to see the detrimental effects it may/will have.

I am not against this package being initiated in Australia, i am just throwing up ideas as to why it was not offered here since you asked why it wasn't.

[Tim]

i am just throwing up ideas as to why it was not offered here since you asked why it wasn't.

oh thats easy! Its cos the current gov doesnt know its tuchus from its elbow when it comes to worthwhile economic policy

(not that I believe it is just too easy an opportunity to not take a shot at the gov)

[PassatB6]

Apparently there will be more plasma packages in the future, err I mean stimulus packages.