Dealers benefiting from scrappage knock-on effects

Dealers up and down the land are being inundated with enquiries regarding the scheme (as we have taken to calling it) however many just don’t have the cars which qualifying customers are asking for. As we pointed out a while back the type of driver who typically owns a car which is more than 10 yrs old isn’t by definition your typical new car buying customer. This of course is a general assumption but nevertheless seems to be being borne out by the fact that those buyers keen to take part are opting for smaller, economical models of which there are a shortage because this is the “go to” option for car buyers in a recession.

The interesting thing, however is that if a dealer cannot satisfy an order because of a stock shortage (as bizarre as that sounds when we remember un-sold cars floating around on big ships and fields and disused airstrips full of new cars) they are still grateful to have an enquiry from a potential customer who is keen to change their car (otherwise known as “gold-dust”)

Some are combating this little conundrum by attempting to convert customers into used cars by offering a deal nearly as good as the scheme. They will also rely on the fact that many drivers of older cars have not had recent buying experience and will be dazzled enough by the sparkling up to date models to be quite easy to sell to.

As we are always saying when is a deal a good deal? When the person on the receiving end believes it!
For many dealers, so far, there is no bad news, unless they are not participating and even then there will still be people enquiring with their local dealers, and will therefore be presenting them with the golden opportunity to offer an alternative choice.

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