Scrappage boosting prospects but let’s wait for the sales

We’re hearing from a lot of dealers who are saying that they are getting lots of enquiries regarding the scrappage scheme. Indeed Ford and Honda are talking up the scrappage incentive and Honda in particular are clearly in need of some sales bearing in mind their factory is only just re-opening again after 3 months. It is hoped that we the scrappage scheme does add more new car sales for all participating manufacturers and if the figures that we hear bandied around are true then it certainly sounds encouraging.

If and when dealers do commit to the scheme it will be interesting to see how many of these orders / enquires actually turn in to sales if customers are expecting the £2,000 government / manufacturer discount and a dealer discount on top.

It’s good news if sales do vastly improve and some old ”nails” are disposed of but until we get some definite numbers we should tread carefully.

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3 Responses to Scrappage boosting prospects but let’s wait for the sales

  1. admin May 16, 2009 at 9:43 am #

    You have an old poggler worth a max £50 you get £2,000 for it via the scrappage scheme; you spend £3,000 from your own pocket and get a brand new Fiat Panda for £4,995! Now you might not like the car but you can’t knock the deal, surely an example of the scrappage scheme working for some. Again, if you are buying a deal, great! but if you want a great car, we’re not so sure!

  2. claudia May 17, 2009 at 3:40 pm #

    Does mti know if the £2000 i get for my old corsa will be able to be used as a down payment for a loan on a new car,i have no money to put in and a new car would be great if i can afford the payment?

  3. admin May 18, 2009 at 12:11 pm #

    Hi Claudia, As far as we’re aware the £2,000 scrappage incentive is just that, an “incentive”. So basically the discount cannot be used as a form of down-payment on a finance package. If, however you have an excellent credit rating there will be plenty of deals around which will not require a deposit. As always do your homework and shop around.

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