All aboard the scrappage bandwagon
Some dealers, either buoyed by the success they are having, keen to arrest a decline or attempting to wring out a bit more marketing juice and bask in some reflected glory from the success of the government backed incentive, are introducing their own scrappage “initiatives”. Mitsubishi, for instance, are giving a minimum £2,000 on cars registered between1999 and 2004 (the government scheme covers cars registered on or before August 31st 1999). Looking at the recently published new car registration figures and a near 56% year to date decline it is perhaps no wonder that Mitsubishi, with competitive finance deals and flexible terms, are looking at such a radical promotion to re-ignite their new car sales.
If we take out the 212 new cars Mitsubishi sold and registered to customers under the government scrappage scheme in June they are left with 931 units for the month and a pretty disastrous 35% decline on June last year
The offer is only at participating dealers and the £2,000 guarantee is subject to dealer “discretion” and perhaps the only catch is the fact that cars registered in this extended period will often more likely be worth more than £2,000 anyway.
So is this ‘deal’, and one like it, really nothing more than a £2,000 minimum part exchange allowance? Again do we come back to marketing and a little bit of shameless bandwagon jumping, or is there something we are missing?
The Motor Trade Insider Guide To Buying New Cars
- The austerity measures about to be undertaken by the new coalition government could have a dramatic effect on car sales [...]...
- The scrappage scheme has probably taken up more space and time in blogs and column inches in newspapers this year [...]...
- Many sales people will have been celebrating the end of a successful September campaign with a pint or two or [...]...
- Russia is set to introduce its own car scrappage scheme following the success of similar programmes in the US and [...]...
- According to the SMMT (Society of Motor Manufacturers and Traders) 29,796 vehicles have been registered so far under the scrappage [...]...
- In conversation with some sales managers recently, and always wanting to be in the thick of the latest events especially [...]...
According to recent research used car buyers are most likely to buy a blue or black 5 door hatchback which is 3 years or older. Does that sound like you? 
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