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21/01/2010
Manufacturer Scrap Scheme Predicted
Kevin Gaskell, motoring expert and Chairman from Motoring.co.uk, has given his prediction of how the automotive industry will react to the ending of the governments scrappage scheme.
"The scrappage scheme has brought forward into 2009 many new car sales which normally would have occurred in 2010.
"In countries where the scrappage scheme has already finished, such as Germany, the sales trend is sharply down and the market is fearing a drop from circa 3.8million registrations in 2009 to possibly as low as 3 million in 2010.
"It is possible that the UK could follow suit unless alternative promotional activities are introduced by the car manufacturers and dealers."
He continued: "The government has announced that the official scrappage scheme will end in February but I envisage similar forms of support will continue, funded by the manufacturers.
"It should not be forgotten that whilst the government has been providing £1000 for each car to be scrapped they have, in return, received VAT on the cars being sold resulting in a total net gain of around £150 million over the life of the scheme.
"The other £1000 of the £2000 scrappage premium was provided by the manufacturer or dealers themselves."
Mr Gaskell said a number of manufacturers are likely to continue to support new car sales with their £1000 contribution.
This could take the form of lower new car prices, subsidised finance schemes, free servicing or other similar customer support measures which should help to mitigate the likely drop in sales.
He added: "These alternative support measures should be highly attractive to owners of older vehicles which didn't qualify for the scrappage premium and so opens the opportunity to buy a subsidised new car to a wider audience of potential buyers."
(PR/GK)
"The scrappage scheme has brought forward into 2009 many new car sales which normally would have occurred in 2010.
"In countries where the scrappage scheme has already finished, such as Germany, the sales trend is sharply down and the market is fearing a drop from circa 3.8million registrations in 2009 to possibly as low as 3 million in 2010.
"It is possible that the UK could follow suit unless alternative promotional activities are introduced by the car manufacturers and dealers."
He continued: "The government has announced that the official scrappage scheme will end in February but I envisage similar forms of support will continue, funded by the manufacturers.
"It should not be forgotten that whilst the government has been providing £1000 for each car to be scrapped they have, in return, received VAT on the cars being sold resulting in a total net gain of around £150 million over the life of the scheme.
"The other £1000 of the £2000 scrappage premium was provided by the manufacturer or dealers themselves."
Mr Gaskell said a number of manufacturers are likely to continue to support new car sales with their £1000 contribution.
This could take the form of lower new car prices, subsidised finance schemes, free servicing or other similar customer support measures which should help to mitigate the likely drop in sales.
He added: "These alternative support measures should be highly attractive to owners of older vehicles which didn't qualify for the scrappage premium and so opens the opportunity to buy a subsidised new car to a wider audience of potential buyers."
(PR/GK)
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Around 25,846 new cars were registered through the scrappage scheme in January - 17.8% of the month’s total - new figures have revealed. Average CO2 emissions of a car bought through the scheme was 133.3g/km, almost 10% below the overall new car market average and 26.
04 March 2010
Scrappage Strengthens Car Sales
New car sales for February 2010 announced today, show that new cars sold in the month were 26.4% up on February 2009, the eighth consecutive monthly increase. Latest Government figures show that 367,506 new vehicles have been ordered through the scrappage scheme since it went live. Over 19% of February sales were part of the scrappage scheme.
Scrappage Strengthens Car Sales
New car sales for February 2010 announced today, show that new cars sold in the month were 26.4% up on February 2009, the eighth consecutive monthly increase. Latest Government figures show that 367,506 new vehicles have been ordered through the scrappage scheme since it went live. Over 19% of February sales were part of the scrappage scheme.
18 March 2010
'Scrappage Hangover' Begins In Europe
Dramatic evidence of the shifting fortunes of the car industry is revealed in latest figures from the world’s leading provider of automotive data and intelligence, JATO Dynamics, which show the effects on brands and European sales figures, of declining new car demand in Germany.
'Scrappage Hangover' Begins In Europe
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27 April 2010
Car Website Calls For Motorist's Manifesto
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Car Website Calls For Motorist's Manifesto
As political campaigning reaches its final stage, leading used car website, motors.co.uk has called for a Motorists’ Manifesto to place the needs of UK drivers at the top of the political agenda. The move follows new research by the website into the key issues concerning motorists ahead of the election.
09 March 2010
Surge Expected In Secondhand Market
With the scrappage scheme in its final month, consumer demand for £4-6,000 second-hand models is expected to surge as new cars become less value for money, says e-retailer Carsite.co.uk.
Surge Expected In Secondhand Market
With the scrappage scheme in its final month, consumer demand for £4-6,000 second-hand models is expected to surge as new cars become less value for money, says e-retailer Carsite.co.uk.
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