Help Sitemap Home Skip Navigation Contact Us Disability Statement


£2,000 car scrappage scheme stalls in row over VAT

Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image

Published Date: 16 May 2009
By ALASTAIR DALTON
CAR buyers hoping to taking advantage of the government's scrappage initiative may be unable to drive away a new vehicle when the scheme is launched on Monday because of a VAT row.
Motor industry leaders said last night some manufacturers might delay joining the scheme after failing to reach agreement with government officials.

The measure, announced in last month's Budget in an attempt to boost sales, involves buyers receiving a £2,000 discount on a new car for trading in models at least ten years old.

The cost is being split between the government and the industry.

The Society of Motor Manufacturers and Traders said: "The dispute probably means some manufacturers will not be able to deliver vehicles to customers on Monday. We are seeking clarification about the VAT split between manufacturers and dealers, and how it is administered."

The Department for Business said manufacturers had signed up to the scheme and its terms and conditions were clear.





Page 1 of 1

  • Last Updated: 15 May 2009 9:16 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: The Budget
 
1

Observer,,

Glasgow 16/05/2009 00:21:43
Well let's face it, it's an incredibly stupid idea in the first place.
2

Charles Linskaill,

Edinburgh 16/05/2009 03:12:06

WELL! I did tell you all about the VAT elements, in this reported subject yesterday, did I not!
Your Charles, is tomorrows News, Listen to what I say!
Learn you Will!


3

Stuart505,

Glasgow 16/05/2009 07:11:53
1. I agree, another useless initiative from a tired and rudderless government, if only they put as much effort into the basic needs of poverty, housing, poor infrastructure and the rest.
4

Soloman,

Stirling 16/05/2009 12:14:01
This scheme is flawed from th start. Most people that by new cars change them every 2- 3 years.Most people with 10 year old cars can't afford a new one.

If your 10 year old car has not got an MOT then it doesn't qualify. So take it to your local garage spend the £500 to repair it then take in to get scrapped.

Did Lord Mandelson have something to do with this great idea? No doubt the Aluminimum dealers in Russia can benefit some how!


X VOTE SNP X

X INDEPENDENCE FROM WESTMINSTER AND MANDELSON X
5

Mr A Roy,

16/05/2009 21:56:06
Well blow me down so i buy a new car for 12 grand and get a discount for 2 that leaves 10k to pay, Oh but wait a minute The day after i buy my car i found out its only worth about 9k, Thats one hell of a saving eh ? Oh but hang on i could keep my old car go the showroom, Buy a car with maybe 10 miles on the clock and get it for about 8k. What a silly idea.
6

Scrappageman,

CarScrappageScheme.com 17/05/2009 13:14:59
The Government are effectively giving £1,000 with one hand and taking £1,500 with the other.

Isn't the motorist being charged £500 for trading in their old vehicles?

Car Scrappage Scheme .com

 

Comment on this Story

 

In order to post comments you must Register or Sign In

 
 
RSS Feed of this article's comments
Delivery formats: RSS, Atom, Javascript & Email
 
  

 
 


Sister Newspapers:
Press Complaints Commission

This website and its associated newspaper adheres to the Press Complaints Commission’s Code of Practice. If you have a complaint about editorial content which relates to inaccuracy or intrusion, then contact the Editor by clicking here.

If you remain dissatisfied with the response provided then you can contact the PCC by clicking here.