Rhymes with "scrap"

A while back I wrote about the RAC's suggestion that cars over 18 years old should be scrapped. I was a bit worried about this, as a body such as the RAC is respected enough that even the government might listen to it on occasion. Since then I haven't heard anything further on that particular plan, but what you might well have noticed in the UK more recently is the government's plan to offer £2000 towards a brand new car if you're trading in one more than 10 years old. The ten year old car will then be scrapped - as naturally, it's going to be more polluting than something brand new. In theory.

As I pointed out in my last story, the figure that the government always goes on is the CO2 figure. A useful figure, undoubtably, and we all want to do our bit to reduce CO2. But then it's not really a relevant figure for judging anything, because it's more or less directly correlated to fuel consumption, a figure that we've been using as a yardstick for years. And lets not forget, we already get taxed according to how much fuel we use in a very natural way - the more fuel we put in our cars, the more we pay in tax. The current taxation based on CO2 is basically a second fuel tax, only less fairly applied as it's indiscriminate as to how much a car is used. It's perhaps unfair for a Ferrari owner who does 1000 miles a year to pay a vast amount on road tax, when someone in a "green" Prius might do 20,000 miles a year and pay nothing under the current rules.

Anyway, I digress - I should be talking about the new scrappage scheme. On the face of it, all appears well. You trade in your ten year old banger, and the government and the manufacturer each give you £1000 towards your new car.

Anyone else spotted the deliberate mistake yet? If you're driving around in a £2000 "banger", what is the likelihood you're financially in a position to buy a brand new car, even with a couple of grand lining your pockets? The cheapest new car on sale in the UK at the moment is the Perodua Kelisa which starts at about £4600. Incredible value undoubtably but very possibly worse than virtually any ten year old car worth about £2000. I recently drove an 11 year old Honda Civic 1.5 VTEC, which uses lean burn technology to achieve a very respectable 44mpg on the combined cycle, and still offers good performance, unquestionable reliability and a large dealer network, yet second hand costs around a grand. Even if you were then loony enough to want to trade this in for a Kelisa, you'd still have to find an extra £2600 from somewhere. So you'd then take out a loan, which is exactly what put us in the economic mess we're currently facing in the first place.

Would you trade Civic for Kenari? Are you reading this from a padded cell? (Perodua image: Parker's)

And remember, that's if you wanted the very cheapest new car on sale. Unless you've been saving like a magpie for the last five years and are vaguely financially secure (and yet somehow still manage to have a 10+ year old car instead of a newish one anyway), then I really can't see how the cashback offer is going to benefit many people. The gulf is even greater if you want to trade that ten year old BMW compact for a shiny new 1-series (even with the additional £1260 BMW are offering on a 116i Sport), or even a rusty old Clio for a brand new airconditioned one that's safer than houses. Manufacturer participation is optional, and some have declined to take part reasoning that it will offer neither themselves nor their potential customers any benefit.

I only hope the sceme will be useful to those who really can benefit from it before the whole thing is declared a massive failure and pulled. Hopefully in the meantime it won't take too many of the good decade-old cars off the road like the Civic above, because for some of us, those are the cars we can actually afford.

If you do want to read more about the scrappage scheme, there's a useful FAQ here: http://www.ukscrappage.co.uk/

£1500, fun and 30mpg plus... what would you buy?

It's a good question, isn't it? Particularly if, like me, you happen to have that budget, and those requirements from a car. £1500 gets you a surprising amount these days, anything from tidy superminis, MPVs and third-hand family cars to classic roadsters, hot hatches and sports saloons. Some will make great runarounds or first cars and others fun weekend toys.

But, if you're like me (young, skint, and like a bit of fun from your car now and then) you might find your choice rather more limited. Sure, you can find plenty of old hot hatches at this price, but unfortunately many have been ragged to within an inch of their lives by now, and insurance is still very expensive even with a few years no-claims behind you. Such is the plight of the young driver.

However, hope is in store. There are still choices out there, if you look hard enough, that will provide you with fun and reliable motoring, but importantly, not emptying your wallet come renewal time or at the pumps. With fuel prices as they are, easily doing more than 30mpg is virtually essential nowadays. Below is a selection of cars that meet the above criteria. What would you buy?

BMW 316i/318i (E30)

The E30 3-series is slowly becoming a collectors' item. Partly due to it being an important model for the marque, and partly to ensure the survival of original cars before they're all snapped up by the tuning brigade. The 316i and 318i aren't the fastest, but they are both cheap to run and the £1500 budget will get a model in very nice condition. A bit of rear-wheel drive fun to start the list.

Honda CRX ESi (3rd gen)

Having seen the success of Mazda's MX5, Honda decided to make their own sports car based on the Civic. It wasn't as light and loony as the model that preceded it, but it has it's own character and roof-out fun. The ESi has roughly 120bhp, does almost 40mpg and is much cheaper to insure than the screaming VTi.

Honda HR-V

A choice from way out at left-field here. You might not have expected to see a small 4x4 here - after all, they're not known for their great fuel economy or fun. Yet Honda were singing from a different hymn book with the HR-V - not only does it do at least 33mpg, but it's also supposed to be good fun to throw about.

Mazda MX-3 V6

Mazda's coupe has managed to avoid the general public's consciousness thus far (thanks to more popular choices like Ford's Puma and Renualt's Megane Coupe), making it a great second-hand choice with low prices. The V6 engine sings yet manages mid-thirties mpg, and the cars seem generally well built and reliable.

Mazda MX-5 mk1

Another small Mazda, but one you've heard of this time. £1500 is remarkably little to buy a classic, but it's achievable with the MX5, and it's going to buy you a whole bundle of affordable fun. Ignore the hairdresser jibes - anyone who's driven one will tell you it's impossible to have perfect coiffure after five minutes with the hood down...

Porsche 924

You what? A Porsche for how much? It was always designed to be affordable and now you can buy one for pocket money. It isn't, as you might have heard, equipped with a van engine - it was an Audi engine that was tuned for use in the 924 and detuned for use in a VW van. Owners report 30mpg, and £1500 should get a nice one.

Saab 900 T16

Turbo lag and torque steer. Right, now the stereotypes are out of the way, we can appreciate the car's unusual styling, great seats, bucketfulls of character and great performance. Not only that, but many insurers consider it a classic now, so you might be able to benefit from cheap classic insurance.

Toyota MR2 mk1

Rumor has it that the MR2 project was initially developed with Lotus, but Mazda took the project on fully when Lotus had financial issues and abandoned their share. So if you squint a bit, you're looking at an 80s Lotus Elise. Maybe. Either way, it's a brilliant drivers car which does mid-30s mpg. You may have to look hard for one untainted by rust, however.

Toyota Paseo

Even less known than the Mazda MX-3, and arguably not as special, but with 40mpg easily achievable it has it's own merit. And of course, being a Toyota, it'll last for ever, and ever, and ever. It enjoys a very low insurance group as well, and should be fun, if not up to Ford Puma levels.

Volkswagen Bora Tdi

Although a small saloon seems a bit incongruous next to small sports cars, coupes and hatches - especially a diesel one - the Bora represents brilliant value for money. It's cheaper than the equivalent Golf both to buy and insure, yet shares the same great engines and build. The diesels get an easy 50mpg and can be tuned very easily for much more power and torque.

Volkswagen Golf GTI mk1

My final suggestion is, undoubtably, a classic. If you want to spend £1500 on one, do it now because they're unlikely to stay at that price as they become more scarce and more popular for restoration. Manages 35mpg and faster to 60mph than the standard mk4 Golf GTI. Cheap to insure on classic insurance, too.

An eclectic mix then, and perhaps a bit more interesting than your average hot hatch, yet likely to provide many miles of reliable, economical and fun motoring. If you're lucky, you may even find a little practicality to add to the mix. £1500 really does get you a lot of car.