Government already hailing scrappage scheme a success

Posted on May 29th, 2009 by In51der in Consumer, Manufacturers, News, Scrappage

According to government figures more than 35,000 new cars have been ordered through the UK’s scrappage scheme which started May 18th and ministers believe those cars would not have been sold had it not been for the financial incentive.

However motor industry figures are saying it’s too early to declare the scheme a success with Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, acknowledging that the scheme had enjoyed a “very encouraging” start but warning it could take a few months to fully assess its impact.

The government set aside £300m for the scheme, which was enough to fund discounts on 300,000 vehicles, with public funds providing £1,000 and manufacturers covering the remainder.
Carmakers had lobbied ministers to put in twice that amount to replicate the successful German scrappage incentive.

Despite the clear disappointment from the industry when the scheme was announced and – according to some surveys – a less than enthusiastic response from motorists, the government believes its plan has already secured extra sales.

As we have already said on MTI it seems to be mainly the small, economical cars that are the real winners in the scheme. These cars are the “go to” cars in a recession anyway and, of course, offer the lowest profit margins to manufacturers and dealers.

Get a CAP Used Car Valuation for just £3.50 - What The Professionals Use

The Motor Trade Insider Guide To Buying New Cars

  • Scrappage scheme ends
    The UK government’s car scrappage scheme has officially come to an end after at least 330,000 cars have been sold [...]...
  • SMMT urge government to extend scrappage scheme
    The Society of Motor Manufacturers and Traders has written to business secretary Lord Mandelson urging government to extend the successful [...]...
  • Government has “no plans” to extend scrappage scheme
    The UK government says it has no plans to extend its scrappage scheme following America’s decision to allocate a further [...]...
  • Government “insider” pours cold water on scrappage hopes
    The Government has denied reports ministers are warming to the idea of a scrappage scheme to boost new car sales [...]...
  • Growing calls for car scrappage scheme
    The AA has joined calls for a scheme which would pay motorists to trade in their old cars and buy [...]...
  • Government to discuss UK scrappage scheme
    Retail Motor Industry Federation director Sue Robinson is to meet ministers on February 24 to discuss the possible launch of [...]...

    • Comments are closed.

    Automotive Industry News

    About MTI

    Motor Trade Insider
    Our aims:
    Build a bridge between consumers and the trade.

    Create Interesting and informative content.

    Break down barriers and create better understanding.

    Expose bad practices and rip-offs.

    Promote outstanding products and services.

    Motor Trade Insider is written by people working actively in the motor trade for people on the inside and people on the outside.

    Motor Trade Insider New Car Buying, Used Car Buying, Used Car Prices, Used Car Values UK. Car buying guide. Whether you’re buying a new car or interested in used cars or car valuation or just general information and advice on the motor trade and UK Automotive Industry.

    Valid CSS!

    Valid XHTML 1.0 Transitional

    [Valid RSS]

    Bargain of the Week

    Bargain of the Week – Land Rover Discovery

    Bargain of the Week – Land Rover Discovery

    With all the boxes ticked it does make you wonder how the British government think they can keep raising the cost of car ownership to ...

    Bargain of the Week – Ferrari 355

    Its V8 engine became the first road-going Ferrari to have bypass valves built into the exhaust system letting pretty much all of its thunder explode ...

    Bargain of the Week – 2003 Range Rover 3.0 Td6 HSE

    With the recent facelifted Range Rover and Sport doing wonders for sales, forking out for a 10-plate can set you back over 50 big ones ...

    Scrappage

    Order takers stand aside – it’s time to get back to selling cars

    Order takers stand aside – it’s time to get back to selling cars

    A sales manager we spoke to who represents a franchise for a German manufacturer said that normally in the build up to a plate change ...

    Car Makers Premier League – July 2010

    with the headline figure for the month being a 13.2% decrease to 136,446 units. In July 2009 the market had showed its first increase for ...

    The scrappage scheme has ended, get over it

    The continuous changes which the car trade is undergoing means that until staff get the message that customers demand (and deserve) great service and will ...