To put the scrappage scheme into perspective it really didn't cost either the government or the dealers anything at all.
The Gov't put in £1000, but they got back more than that from the VAT on the new car.
The dealer just knocked £1000 from the new car on-the-road price, which was less than their profit margin, plus they got the servicing work for at least the first 12 months on most new cars supplied. You could buy a 6-month old new car for at least £1500 less than the showroom sticker price and still get a long warranty.
So who actually paid the £2000? Well, the buyer who traded in his £2000 worth of old car.
Of course, the scrapped had a scrap value, but I'm not clear where this 'weighing-in' money went, not the value of any salvaged parts.
What a con!
What Car published an article the following year showing the some manufacturers had managed to increase the cost of their cars by more than the £2000 discount during the scrappage scheme
http://www.thisismon...-up-prices.html