What a great complaint here

Car manufacturers are cashing in on a diesel price scare by launching scrappage schemes for drivers of polluting cars who agree to buy brand new “greener” versions.

It comes after the Government threatened to develop a diesel scrappage scheme but failed to follow it through.

Now manufacturers including BMW and Ford are taking matters into their own hands with their own pollution-reducing trade-in schemes.

Both have said they will give drivers of pre-2009 diesel vehicles a £2,000 discount if they trade it in and by a new car.

Last night experts said that although the moves would go some way towards reducing air pollution they were also designed to boost sales of new cars, as discounts are not offered on used models.

Manufacturers are cashing in, eh? Facepalm.

As to the used car thing. Anyone noted that the manufacturers don’t actually own used cars therefore don’t control their price?

11 comments on “What a great complaint here

  1. “Both have said they will give drivers of pre-2009 diesel vehicles a £2,000 discount if they trade it in and by a new car.”

    Has the Tel stoped using spell and grammar chers as well as subs?

  2. See my comment on the previous post.

    It’s getting to the point where I’m wistfully wondering about the chances of a military coup. Unfortunately it would now be run by dickheads and anyway there aren’t enough blokes to take and hold Brum, so even that’s a pipe dream.

  3. With PCP / leasing deals, don’t the used cars revert to the manufacturer at the end of the lease? So strictly speaking, manufacturers do own some used cars.

  4. It’s a discount on a new car, which you could probably negotiate anyway. Bit like saying n% off RRP as if anyone ever paid RRP.

    These deal could affect used car prices by taking them off the market there will be a shortage of used cars of that age.

  5. “Anyone noted that the manufacturers don’t actually own used cars therefore don’t control their price?”
    Yes they do. By setting the price of the new cars that become the second hand market, down the line.
    It’s one of the reasons expensive cars depreciate faster. Buyers tend to opt for the trouble free, new cheap car option, rather than expose themselves to the risks attached to a used expensive one.

  6. Also, WRT to the prices of used cars; it will, but, more importantly, it will alter the replacement rate of used cars with new. Assuming that the car market is now basically saturated, (you’d be looking for a plateau or drop off in new registrations becoming apparent a couple of years before Brown offered the trade-in cash), and that the basic level of engineering has improved…

    Back in the Eighties, a car that had much over 80/- miles (possibly yards for British Leyland) on the clock was going to be due some fairly major maintenance RSN. At an average of 10/- miles pa, owners would be looking at an effective life of about 6 to 8 years before the really expensive bills started dropping onto the doormat in years 9-10. By around 2005, chassis, engines and gearboxes were becoming good for 250~300/- miles, possibly 350 or more. Even if average annual mileage rises by 50% to 15/-, that’s a life of nearly 20 years, or 2.5x over the previous twenty years. If the market grows at less than 2.5x, then new car sales have to fall.

    If you can manage to sweep a chunk of older cars out of the market every so often, on some pretext, you can maintain new car sales. See also, the conditions of the personal leasing plans.

    Almost makes you wonder who dobbed VW in…

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