Scrappage schemes may be popular with car makers and many motorists, but they are usually as financially questionable as they are environmentally spurious.
Sustaining the capacity to produce cars that consumers are unwilling to pay for in full distorts competition and inevitably creates the need for further and prolonged state intervention. After all, these sales have not been conjured from the ether; in most cases they are simply purchases that have been brought forward.
A study by a German economics institute criticised scrappage schemes for the way in which they distort competition, create the need for further state intervention and compensatory measures in other branches of the economy.
The Halle Institute for Economic Research said of Germany’s own scrappage scheme: “Behind these payments stands nothing more than the subsidising of an individual branch of the economy – with all the negative distorting effect that such favourable treatment brings…”
The government’s Joint Air Quality Unit is consulting on policies to support individuals and businesses affected by forthcoming plans to clean our air. This will inevitably involved dealing with diesel vehicles in particular.
The consultation runs until 5 January, so don’t forget to have your say on how a Government-funded vehicle scrappage scheme should work at consult.defra.gov.uk/airquality
For example, any future scrappage scheme might prioritise non-motorised options like train tickets, car clubs or electric cargo bikes.
Ethical insurance
The ETA has been judged to be Britain’s most ethical insurance company 2017.
The Good Shopping Guide each year reveals the good, the bad, and the ugly of the world’s companies and brands, with a view to supporting the growth of social responsibility and ethical business as well as a more sustainable, just society.
Beating household-name insurance companies such as John Lewis and the Co-op, we earned an ethical company index score of 89 – earning us joint-first place with Naturesave.
Your Journey Our world
The ETA was established in 1990 as an ethical provider of green, reliable travel services. Twenty seven years on, we continue to offer home insurance, cycle insurance, travel insurance and breakdown cover while putting concern for the environment at the heart of all we do.
Jim Clark
As someone who has never bought a new car, just low mileage locally owned cars two or three years old, hopefully getting a few hundred pounds trade in for my old car which I usually have had for five plus years.
A few years ago when I enquired about a fairly new low mileage car on the forecourt of a dealer and asked about trade in the salesman went in to full scrappage mode. The gist of it was only certain models were part of the scheme and despite getting a scrappage discount I would have to buy a bigger car than I wanted, it would still have cost me more than the good condition low mileage second hand car I was after and I still got a few hundred pounds trade-in for my existing car. It was also nice to see a deflated car salesman.
Sales persons are like politicians all smiles and lies and so sincere with your best interests at heart.