Comments on: US scrappage scheme gathers pace

By: Kev

Kev — Sun, 19 Jul 2009 20:49:27 +0000

That is a very good question, but one Hyundai would have to answer, not a humble dealer

My own theory is that Hyundai see this almost as an ad campaign, i.e the publicity it is generating is worth the cost.

Our market share is amazing right now, and I have heard that at one point this month we were registering more cars than Ford, which should be completely impossible!

It will be interesting once it all ends (if it does!) if we can carry on offering a £1k discount.

Kev

By: Mike Fenton

Mike Fenton — Sun, 19 Jul 2009 20:37:01 +0000

Thanks Kev for the reply and explanation.

It does beg the question though, why weren’t you offering an incentive of £1000.00 before the scheme began to boost sales. That is in effect what you are doing now, isn’t it?

By: Kev

Kev — Sun, 19 Jul 2009 19:06:24 +0000

Hi Tony,

Again I can only speak for my own dealership, but as I already said, there was no discount off any i10 (or i20 come to that) models prior to the scrappage scheme.

On bigger models, there was of course more money off, but now under scrappage those cars now have much larger allowances. For example, the i30 now has £3500 off under scrappage, not just the £2000.

I can not really reveal how little we make on an i10 or i20 under scrappage (and I doubt you would believe me anyway), but after paying for the PDI, and some fuel, and giving the salespeople some money, I can promise you no one is getting fat on it.

Kev

By: tony

tony — Sun, 19 Jul 2009 18:54:36 +0000

it maybe the case that the cars that people are most interested in are generally the cheapest,meaning presumably where the small;est profits are for the dealership,therefore to expect much more of a discount would probably be met with a firm no way! esoecially like kev says that they are selling like the proverbial hot cakes.I however would still ask the question because if the government and manufacturer are sharing the £2000 incentive then surely the dealer can afford a bit of leeway as well,i bet before this scheme was launched dealers would be only to willing to give a £1000 discount and perhaps more

By: Kev

Kev — Sun, 19 Jul 2009 18:03:53 +0000

Well Mike, I work for a Hyundai dealership, and before the scrappage scheme, we were selling i10s without any discount at all.

Now, they have £2100 off them if you are lucky enough to have a qualifying scrapper.

You are indeed right that scrappage deals are stand alone, but also be aware that the UK govt is only putting £1000 into the scheme, all other money comes from the car maker and/or the dealership.

I can of course only speak for my dealership, but it has been an amazing 8 weeks, since the launch of the scheme, and so far we have sold 293 cars against probably 50 or so in the same time period this time of year.

Kev

By: Mike Fenton

Mike Fenton — Sat, 18 Jul 2009 17:59:00 +0000

I am a little sceptical about the scrappage scheme. I assume that if you offer a qualifying vehicle for the £2000.00 on offer in part payment for a new model then all other buying incentives will not apply e.g. If I were to thrash out a deal with a dealer for xxx amount off of a new car and then say ‘ Right, here is my old banger I want another £2000.00 off please’ I am guessing that would not be acceptable.
Will the scrappage scheme be a ‘NOT AVAILABLE WITH ANY OTHER PROMOTION’ scenario. If that is the case, and I hope it isn’t, then intelligent people must surely see through it.