Author Topic: Ford scrappage scheme.  (Read 448 times)

Jocko

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Ford scrappage scheme.
« on: August 22, 2017, 07:04:15 AM »
Ford UK have announced a scrappage scheme for vehicles 7 years or older, from any manufacturer, where they will take the old vehicle and give you 2000 off the price of any new Ford. These vehicles will be scrapped and not sold on through car auctions or the like. Unlike other European manufacturers this will apply to petrol as well as diesel engined vehicles.
I am not that naive not to realise that this is more a marketing ploy than about green issues. Be interesting to see how much of a take up of the offer there is.

sparky Paul

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Re: Ford scrappage scheme.
« Reply #1 on: August 22, 2017, 08:09:05 AM »
I think it's more about opening up a new market, getting people driving bangers to look at PCP finance deals... the 2000 will fall in nicely as a deposit. New car sales have started to fall in the last few months, the market for cars and vans on finance deals must be approaching saturation.

I notice the BBC are reporting this morning that it only applies to diesels, wrong again as usual.

Jocko

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Re: Ford scrappage scheme.
« Reply #2 on: August 22, 2017, 09:19:08 AM »
The Red Button had it right. Steph was wrong but corrected the fact later. Mind you, Dan said sheep were "furry"!

culzean

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Re: Ford scrappage scheme.
« Reply #3 on: August 22, 2017, 01:24:34 PM »
Car makers ( The latest one is Ford,  but others have been doing it for a while) can put any label they like on this, being 'green' ,  'getting dirtier vehicles off the road' - but in the end it is obvious it is a marketing ploy to sell more new cars in the sagging European market.  Trump has promised to put an import tax (up to 35% ) on German cars into USA as he believes German car makers have been using dirty deals to sell cars in USA over the years,  Merkel will not be happy LOL.
« Last Edit: August 22, 2017, 01:56:14 PM by culzean »
Some people will only consider you an expert if they agree with your point of view or advice,  when you give them advice they don't like they consider you an idiot

TG

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Re: Ford scrappage scheme.
« Reply #4 on: August 22, 2017, 05:13:19 PM »
There's a 53 plate Corsa with "This car is worth 2000" graphics on a stand at the Vauxhall dealer I regularly pass; as said by others if the money is coming from above then maybe the dealer can be a little more flexible but these schemes are certainly not a true discount.

I do remember the glut of 2008 BMW 520d that were offered for less than 20k after being parked in an airfield for nearly a year.  My car leasing neighbour bought over 50 of them.

Quite interested to see what price ex-lease vehicles are fetching at Manheim / BCA, after 12 years of planning this may be the year I replace the Jazz.
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sparky Paul

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Re: Ford scrappage scheme.
« Reply #5 on: August 22, 2017, 07:17:40 PM »
Be interesting to see what happens if significantly lower residuals were to feed through at the end of current PCP deals. I'm sure the finance companies buy indemnity insurance to cover shortfalls, but any serious problems might dent their ability to do this in future.

auntyneddy

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Re: Ford scrappage scheme.
« Reply #6 on: August 24, 2017, 11:51:10 AM »
Oh dear you will upset the MD of Ford who on telly told us that it is NOT a marketing ploy. Then this am we are told that over 80% of new car sales are PCP.
What is happening to all the 3yr old cars that are returned where Charlie ( sorry not picking on Charlie persee) finds he can't afford to keep the car and returns it, I believe, only to be told you have still got to find the difference between what you owe and the s/h value.
We are told more and more people are getting out of depth with their personal debt and yet we have the money people trying to find yet more ways of getting money from joe public.
Trouble is many people fall for their ploys.
Mind you it does seem that Jazz owners are clever enough to see through their antics.

pb82gh3

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Re: Ford scrappage scheme.
« Reply #7 on: August 24, 2017, 12:01:48 PM »
Car PCP's are one of the next big scandals to break in the world of finance. Look forward to PPI scale nuisance calls and grasping solicitors.

Jocko

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Re: Ford scrappage scheme.
« Reply #8 on: August 24, 2017, 12:09:02 PM »
only to be told you have still got to find the difference between what you owe and the s/h value.
That is what happened to my step-daughter. She separated from her husband, and to get a mortgage to buy his share of the house was forced to return her leased car. She had to find 4000 just to return it.

sparky Paul

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Re: Ford scrappage scheme.
« Reply #9 on: August 24, 2017, 12:25:26 PM »
only to be told you have still got to find the difference between what you owe and the s/h value.
That is what happened to my step-daughter. She separated from her husband, and to get a mortgage to buy his share of the house was forced to return her leased car. She had to find 4000 just to return it.

Scary stuff.

peteo48

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Re: Ford scrappage scheme.
« Reply #10 on: August 24, 2017, 12:54:13 PM »
I saw an item on the news a few weeks back where one expert was predicting a sub prime type situation with many car loans - especially PCP deals. Although the total amount out on these deals was nowhere near the amount out on mortgages it was largely unsecured. There were also people with significant negative equity in their cars caused by people changing cars long before the PCP deal had run its course. A collapse in residuals could lead to a banking crisis amongst those involved in financing these deals.

He went on to say that there was a huge amount of irresponsible lending going on in the car market.

I haven't seen any evidence of a collapse in residuals though. My local Honda dealer is asking big money for Mk3 Jazzes - in some cases asking so much you might as well buy new.

But that's the Jazz - other cars may indeed be falling in value.

TG

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Re: Ford scrappage scheme.
« Reply #11 on: August 24, 2017, 02:29:53 PM »
Considering what you can buy for 10k, that amount in PCP payments does not appeal.
278 x 12 x 3 =10,008

I bought my 6 month old Jazz at 3.5% over 12 months but in 2002 BoE base rates were 4% and I got a tiny bit more than that in the bank so I might as well have kept hold of the money myself.  Today with base rates at 0.25% and savings rates less than inflation you might as well spend the money if you can't invest it, but now Honda's PCP APR is nearly 6%.  As we have said before, there is no margin in new car sales but car finance margins look healthy with their inherent roll over / lock in.
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sparky Paul

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Re: Ford scrappage scheme.
« Reply #12 on: August 24, 2017, 03:25:14 PM »
As we have said before, there is no margin in new car sales but car finance margins look healthy with their inherent roll over / lock in.

I think that's where the money is being made these days.

Everything is advertised at "per month", you have all on getting a cash price out of a dealer.

RichardA

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Re: Ford scrappage scheme.
« Reply #13 on: August 28, 2017, 08:19:41 PM »
My local Ford dealer has been offering this very same deal - 2000 min. p/x on cars at least seven years old - on and off for a few years now. They also offered it through their Kia, Skoda and Renault franchises, that's how my dad traded in his 55 plate Kia Rio for a new Picanto a couple of years ago. Although under this scheme the dealer didn't always scrap the trade-ins - I still occasionally see my dad's old Rio driving around.

There were also people with significant negative equity in their cars caused by people changing cars long before the PCP deal had run its course.

The Kia dealer has on at least two occasions tried to persuade my dad into changing his car before the PCP was up.

He went on to say that there was a huge amount of irresponsible lending going on in the car market.

There was a piece about this on the radio a few months back, some dealers were simply not explaining about the charges for damage or excess mileage if the car was returned or traded in at the end of the PCP.

Please do not email or PM me about Honda Jazz issues - search or post in the forums. Thanks

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