I'm pretty sure this will go ahead, because of the perceived political benefits.....although it will screw the car sales for this month, as no-one is going to buy a new car until any deal is announced..or not.
As far as I'm concerned, I think there are many flaws....
86% of cars currently sold in UK are imported, so who are we helping?
Around 50% of normal car sales are to fleets, car hire etc, and they aren't going to benefit from this so no sales boost there. This is one of the main ways in which the car market in Uk differs from that in say, Germany which is touted as having achieved a 40% boost in sales with this type of scheme.
Its widely reported that cars will have to be at least 9 years old to qualify...how many people running cars of that age - W-reg or older, roughly - will be able to afford a new car even with a £2000 voucher?
The second-hand car market will be seriously skewed....6 - 8 year old cars will see their values drop, whereas 9 year old and older will potentially increase......Good news for me as I've loads of them...so anyone thinking of buying a new car in a few months but wanting to keep your old car / sell it for decent money, I and every other used car dealer can do you a good deal on a voucher-earning banger!
Nearly-new cars will shoot up in price, too, if they become eligible for the voucher, as is mooted......Motorpoint etc will be happy...although that would probably upset the government if they realised it, 'cos their VAT take will be reduced (one of the ways in which this will be financed is the VAT payment on the new car----its a lot less on a second-hand car as that is levied on the profit margin)
Government probably also hasn't realised that if J Public does fall for the scheme and all pile into nice economical little boxes as the government say they want, they'll lose a shed-load more money as they'll get less Vehicle Excise Duty, less tax and VAT because they use less petrol, and even less congestion charge income if the cars are low-emission enough....
The devil will doubtless be in the detail, of course, and it probably will be made so complex by our civil servants that very few people will qualify.......
Anyone for an election?