Archive for April, 2009

Just as everyone was predicting the scheme that will reward you of 200 pounds by buying anew car if you scrap and existing one 10 years old has gone ahead. It has a mixed response, first because the car manufacturers are funding 50% of it, so the question is to asked, can they afford it, or why have they not discounted cars by 1000 pounds anyway? Many think they have already done this and will just remove the current discounts put their prices back up normal and then show a 2000 pound discount on their screens. The tax payer will pay for the further 1000 pounds, but of course will get it back in VAT costs.
As reported earlier on CarSpareFinder, this may impact certain breaker yards that specialise in cars over 10 years old. Yes it is likely that more stock will arrive at their yards, thanks to the government, but will anyone want the parts anymore? Many used car dealers who normally sell cars just over one year old, will not be happy with the news. It is very likely that a new car will be cheaper than a nearly new car and if the stock has already bought at pre budget prices, it may harm some retailers.
It has worked for new car sales in Germany, what we don’t understand though, is why some of those sales were not for cars manufactured here in the UK, albeit owned by foreigners? At lease they can say they are trying things to stimulate the motor industry and this may not be a permanent thing, just something get us into new cars for the time being. We may not have many UK manufacturers left but we do have many factories that make cars for other international motor companies, so many jobs could be lost if things do not pick up soon.

We specialise in getting you the best quote from breaker yards throughout the UK for guaranteed used car parts. Many of these yards specialise in specific makes and even some on model only. There are some who tend to deal with older cars, so with a new 10 year reward for scrapping your old car, there could be repercussions for the breakeryard who deals with cars over 10 years old.

The government are considering introducing a plan already in place in other European countries that rewards you for scrapping a car over the age of nine years, when you buy a new car less than one year old. It has been suggested you could get up to £2000 for taking your old car off the road.
The fallout could mean that there is an abundance of old cars taken off the road, with very few little demand for car parts, as many consumers opt for newer cars. Breaker yards will in effect have too many unneeded used car parts to dispose of and will either have to move into a newer salvage type market, or accept a pittance for parts where everyone is competing to clear old stock.

There was an increase of 40% in Germany of new car sales last month who already uses this scheme; you would then have to assume there was a 40% increase of older cars hitting the breakeryards. The European rules of disposing cars and costs involved means, many breakers did not pay for their cars anyway and they could not make a profit if they did, so the possibility of these cars turning up on their doorstep may not be good news, even if they are donated by the Government free.

The drop in scrap metal prices means, that often it is better to break the car than just to weight it in, compounding the situation. The final nail in the coffin could also mean that any old car is effectively worth up to £2000, meaning older cars may only be available through this scheme, as even consumers who own newer cars, may just buy an old banger to trade in instead of their existing car.
Why get £2000 for a 4 year old car, why you can get £2000 for a 10 year old banger and then just sell you existing car privately. Interesting times ahead.