Whats it worth — Cash for your old and used car

The car industry has a new favourite Word – Scappage. Scrappage is a new developed sheme in which car owners that have cars older than nine years can bring their old ones to a recycling plant and receive a lumb sum of 2,000 british pounds in the purchase of any new car they are acquiring at a car dealer. Sounds like a great deal for car owners, the environment, recycling plants and automobile dealerships … or maybe not?

First of all you have to be aware of that shemes such as this are already outrolled in many other countries so that you can use their examples as comparison and reasearch. Results showed that car sales increased and hereby the economy was boosted. Employment in car factories and automobile dealerships was maintained and the environment benefitiated from fewer cars with a high pollution on the road. Looking at these results it seems like there is no other decisión than implementing the same for the United Kingdom.

Citroen 1

The person in charge for this change and the implementation of such a deal is Lord Mandelson, known for its numerous comebacks, and if implemented 500 million pound would be available for this sheme. However there is a slight knot no one seems to have noticed. In reality cars produced in the UK are made for other people/countries. There is not really a big exisiting british car industry. Round about 86 % of all cars bought in Britain have been imported ad roughly 76% of all cars made over here are being exported.

Taking the observations of such shemes in other countries it becomes obvious that most people buy highly fuel – efficient cars for their 2,000 pounds of reimbursement. Those types are not being produced here in the UK. Only two cars fabricated in Britain fall into this category and they are Nissan Micra and MINI. Together they account for only 4 % of the british market. As a result this means that about 96% of the money from the shemes goes into “subsidizing” foreign car companies and factories that do no even opérate inside the UK but have their plants outside England. The German scrappage sheme has around 65% of the vehicles subsidized produced in Germany. In France its 62%.

Whereas factories in Britain would not benefit a lot it could help the dealerships on homesoil, though they usually offer discounts of more than the amount of 2,000 pound so the market has not really experienced a big “kick start”. Probably for the dealers this 2,000 pound will not really make a difference. If they offer to take back and old Land Rover and give a discount of 7,500 pound for a new one and this does not work and extra 2,000 pound from the government will probably not make the decisive difference.

Citroen_Saxo

Looking at the ecological advantages off such a sheme, old high polution car that have to be removed for new shiny and highly fuel efficient cars come to mind. However looking at carbón outpost it becomes obvious that the amount of carbón produced by the mere production of a brand new car outweights whatever benefits earned. So actually taking your car from the road after only nine years is fatal when it comes to ecological aspects. Renown Philip Gomm of the RAC Foundation is off the opinión that an ideal tradeoff for the environment would be to drive your car for 18 years and then Exchange it for a new one. Although he also notes that for some “high pollution cars” even after nine years a scrappage can be useful but under no circumstance there should be a “one size fits all solution”. Scrapping a nine year old Citroen Saxo in order to receive 2,000 pound reimbursement on your brand new 5 litre VW Touareg is surely not what the inventors of the sheme had in mind.

The public, believing polls and the car industry in the United Kingdom are in favor of the act and asking any person if they would like a discount of 2,000 pound for their new car returning their old one most definitely they will say yes althoug maybe they cannot even afford a car at that moment.

The question at last is if scrappage really is a valid solution? In order to so you need to focus more on the problem you want to solve. What is it…car sales? …. The environment? ….old vehicles that pollute the environment? …. Or maybe even the authorities trying to implement a new policy for popularity but little sense? One thing is certain, that time will show and tell.

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