Car Dealer Bailout

[SPN]

The mentality is still all wrong. Ireland does not produce cars, kickstarting the car industry is not going to generate any wealth, only debt, and of that debt, 7k will go to the government to pay for junkets and bank bail outs, and the other 15 grand will go to japan or the U.K. or germany where the cars are actually produced leaving the Irish economy in a worse position than it was in before.

+1

That spin in the papers is coming from the SIMI. They are trying to make this fly for their own ends.

There is NO merit in a scrappage scheme from the perspsctive of Ireland Inc.

You go into any car dealer any Friday and offer him 80% of the sticker price in cash and he'll take the hand off you.

[wysiwyg]

+1

That spin in the papers is coming from the SIMI. They are trying to make this fly for their own ends.

There is NO merit in a scrappage scheme from the perspsctive of Ireland Inc.

You go into any car dealer any Friday and offer him 80% of the sticker price in cash and he'll take the hand off you.

Yup, that's true... and even if they give you 3,000 scrappage for a 10 y old car, they'd nearly ask you to take the car away with you, because they can do nothing with it (bar export it to Africa or somesuch)

The cost of cars is simply too high here at the moment, they are regarded as a luxury item, and the complementary economic costs associated with cars is also on the rise (petrol costs/taxes etc)... so very few people are going to change what are in many cases perfectly good cars (NCT passed, and lets face it, more modern cars do last longer), for brand new cars, and put themselves back into debt for another 17-25k

[meriwether2]

Im beyond getting angry at the government at this stage.

Im more sad for anyone who suffers the consequences of their incompetence, especially those in need of essential public education and health services.

[Akrasia]

Call it a bail out if you wish but it actually generates revenue for the government.

If they give €3000 for scrapping your car you will have to buy a new one to avail of the offer.

The VAT and VRT you pay on a new car will more than cover the €3000 the government gives you. So the government gets the big VRT and VAT lump sum less the €3000 grant.

* The green party is happy because greener cars will be on the road.
* The government is happy because they get a boost in tax intake.
* Joe Public is happy because he gets a few grand off his new cheaper to run car.
* Dealers are happy because they get a boost in sales.

So this is an excellent idea.

Whats the other consequence? debt
For the government to get a few grand tax, someone probably has to borrow 20k which is a drain on the future economy, and where does that 20k go? abroad. If they don't borrow the money and happen to have that much in savings, it's going to be a more immediate drain because someone has to take that 20k out of an Irish bank which is already straining for liquidity and send it straight out of the irish economy.

This would have to be the most inefficient method of government borrowing ever thought up. Instead of increasing the national debt to fund current expenditure, we're increasing individual debt, and instead of increasing the debt to boost the irish economy, we're increasing personal debt to import cars (when there is already a massive surplus of cars on this island)


Its ludicrous

[bobbysands81]

Are you in the C/S or P/S because i was talking to a friend of mine in the bank and he says they would be looked on as bankers to pay back loans.

Yup, I'm a Civil Servant.

Why in the name of god would you have gotten a mortgage in the last six months?

Long long story, signed contracts a couple of years ago, only needed to draw down the mortgage before Christmas, managed to re-negotiate price though so worked out quite well.

[birthday]

Plenty of ''hospitality'' for NUJ members from the SIMI to float this nonsense I'm pretty sure!
If you take this further there would be more jobs for mechanics if we kept cars longer.