Scrappage scheme to help the car industry post COVID-19?

PaulRyan97 wrote: »

I figure something like this is on the cards to help out dealers here who have had their business decimated by the current crisis.

Any ideas on what form something like this could/should take? Similar to the 2009 scheme or something different entirely? VRT rebate on new cars, maybe based on how eco-friendly the car you want is?

A grant for zero emissions or non fossil fuel vehicles only could be a runner nothing for the rest. there is an argument that not producing new cars electric or ICE avoids production of greenhouse gases. Perhaps a grant to convert and refurbish older vehicles to LPG or electric also?

We already throw too much money at electric cars.

Isn't there already up to €10000 in grants/VRT rebates on electric cars and something like €7500 on plug in hybrids? I don't think non plug in hybrids benefit from grants any more.
I doubt there will be anything extra from the government in this case but the dealerships/distributors might do something to try boost their sales.

no one will have any spare money for a few years whilst we get things sorted.

Seth Brundle wrote: »

I wouldn't pay much head to SIMI and to be honest their numbers in that article are a joke.
However, being realistic, how many actual jobs would a scrappage scheme help?

I'd say it's very difficult to put a figure on that without making up a lot of things or a fortnight's intensive research.

But it doesn't take a genius to realise that buying and selling the product will keep people in jobs. It's a bit dim witted to take the approach that when buying a car most of the money goes put of the country. Purchasing in an Irish dealer will support Irish jobs.

Not just the salesmen, the whole dealership gets something from it and the dealerships suppliers too. Mechanics to PDI the new cars, parts departments to supply mats and mud flaps, valeters to prepare the new cars, motor factors to supply number plates and disc holders tyre shine. Lorry drivers to bring in the new cars and take away the scrapers, administration staff etc.

Please God dealers will open back up in time and a few people buy cars later in the year and I can work again. I'm not saying we need government financial stimulus or handouts but local support and business is something you'd hope to have if people can afford to do so.

Scrappage schemes don’t work and they definitely aren’t what’s needed.

If you think about it logically, who has a 20 year old car that has the money to buy a new car? Or the interest?

Scrappage would just devalue the used cars. Who would buy a 17/18 if you could just get a big discount off a new one? And these are the people who are the ones who actually change and buy new cars, to allow the people with 12/13 to trade up a few years, to allow the 07/08s to trade up a few years, the circle continues.

Unless, and I’m not for one Second suggesting this, the government offered cheap money like the offered those 2 percent council mortgages, people won’t have the money to buy new cars.

What’s drives new car sales is a good economy and consumer confidence. so the circle of life as mentioned above can continue.

Toyotafanboi wrote: »

I'd say it's very difficult to put a figure on that without making up a lot of things or a fortnight's intensive research.

But it doesn't take a genius to realise that buying and selling the product will keep people in jobs. It's a bit dim witted to take the approach that when buying a car most of the money goes put of the country. Purchasing in an Irish dealer will support Irish jobs.

Not just the salesmen, the whole dealership gets something from it and the dealerships suppliers too. Mechanics to PDI the new cars, parts departments to supply mats and mud flaps, valeters to prepare the new cars, motor factors to supply number plates and disc holders tyre shine. Lorry drivers to bring in the new cars and take away the scrapers, administration staff etc.

Please God dealers will open back up in time and a few people buy cars later in the year and I can work again. I'm not saying we need government financial stimulus or handouts but local support and business is something you'd hope to have if people can afford to do so.

The last time around the govt was incentivised to get car sales going because VAT/VRT brought great revenue to the govt. The unemployment effects of Coronavirus are worse and more widespread. The motor industry should try and design some incentives for service, repair based activity. Government focus is going to be on job retention/creation. I would expect huge pushes for holidaying at home this summer to kickstart hotels (lots of jobs although many low pay and seasonal), eating out at restaurants etc. The money flies through the economy with a multiplier effect. Likewise with car repairs, servicing, upgrades (even modifications). Boosting car sales will boost government coffers which will be a lower priority. The government needs economic activity rather than deficit reduction.

Hopefully VAT rates on human activity in the motor industry can be reduced.

I’m sure they’d rather take money into the country from abroad via exports than just try and extract it from consumers.
Scrappage schemes are not good for the industry.
What sells new cars is strong residuals on used cars.

screamer wrote: »

No just no. An industry not worth saving. Sure you can buy any new model from any garage. The car industry is outdated, and they destroyed the car pool here last time the recession struck, exporting everything so that we all had to buy new. No, I don’t want my tax money wasted on that industry, besides I see a huge shift in working from home after this passes, and there won’t be a need for so many cars clogging up the roads.

Your username is apt

In the not too distant future a person who wants to use a car will pay the car company a range of fees for car transport.


Cars will be self driving and will arrive at your door from a central depot pool called up by you from your mobile as an when you need it.

You won't unless you are rich, own it but there will be a band of fees say for high use high priority, moderate use and infrequent use.
The fee will cover insurance, covered by the company, any taxes and fuel (electric?).
Private person driven cars will become far less common and insurance will be extremely expensive to run.

Toyotafanboi wrote: »

I mean the motor industry in general.

That said, getting a new car ready to deliver to the customer take a lot more than just a salesman. A used car even moreso.

"An industry not worth saving though". Great to see such positivity.

What are you on about lad?

saabsaab wrote: »

In the not too distant future a person who wants to use a car will pay the car company a range of fees for car transport.


Cars will be self driving and will arrive at your door from a central depot pool called up by you from your mobile as an when you need it.

You won't unless you are rich, own it but there will be a band of fees say for high use high priority, moderate use and infrequent use.
The fee will cover insurance, covered by the company, any taxes and fuel (electric?).
Private person driven cars will become far less common and insurance will be extremely expensive to run.

L-M wrote: »

I would say that’s so far away in Ireland you’re talking next generation stuff.

Agreed. My kids or grandkids maybe, although I know a good few people that don't own cars using Gocar.

I wonder what's going to happen with PCP deals? Are the finance companies going to screw people on the "guaranteed" minimum future value (GMFV) when we're in recession and the cars are worth far less value?

Seth Brundle wrote: »

Ireland does not have a car industry! God I hate that term!

Good job I didn't use it then.

John_Rambo wrote: »

Agreed. My kids or grandkids maybe, although I know a good few people that don't own cars using Gocar.

I wonder what's going to happen with PCP deals? Are the finance companies going to screw people on the "guaranteed" minimum future value (GMFV) when we're in recession and the cars are worth far less value?

When you say "Are the finance companies going to screw people on the "guaranteed" minimum future value (GMFV) when we're in recession and the cars are worth far less value?"

How do you mean?

GMFV means exactly that, if the car is worth less then the GMFV hand the vehicle back to finance company? I am not understanding how the finance companies are screwing people ?