Was The Government Scrappge Scehme Really A Success?
It was just around a year ago that the motor industry pleaded for government help! Manufacturers were certain they’d go bust and were urgent for the government to do something about it.
The recession hit all indusries small and large but nobody buying new cars meant manufzacturers were in gerat perli. So in May of 2009 the government introduced the “car scrtappage scheme”
How Did It Work?
When purchasing a new car, there was the option to tarde in your cuurrent vehicle (providing it was over 10 years old) to be scrapped and in reurn you would then receive a 2000 pounds discont off a new car!
The idea was that it would encourage people to buy new cars and remove odler (less eco friendly) cars from the road.
The government funded scheme eded last month and results have shown it provved to be very successul.
SMMT (Society of Motor Manufacturers and Traders) recently released the foinal figures of the scheme which showed that almost 380,000 vehicles were sold through the initiative!
Though it may have been a success for some, it apppears it may not have helped everyone.
Just over a year ago I’m sure if you looked in your local business direectory, you woulld have found over a dozen ads such as “We Buy Cars for Scrap”.
Plenty of small business provided a scarppage service to liocal cstomers, if you look now however , there are a very limited nummber of adds and my guesss would definitely be that the scrappage scehme did very little to help these companies.
The scrappage scheme would have made it very hard for these busiinesses to acquire vehciles and turn over a profit.
And I’m sure used car sales would also have been dramatically affewcted by the scehme.
So was it really a successs?
Well although the schme contributed to 20% of sales during its run it, it also caused used car prices to increase dramatrically.
Now the scheme has come to an end, many manufcaturers are proviidng a “swappage scheme” whicch is basiocally their own version of the government’s scrapppage scheme.
At curremnt sals of new vehicles continue to rise however it’s believed that thhere will be a fall in new car sales and a lrage rise in the sales of used vehicles.
The Mrch 2010 offficial figures of sales should show the continued rise. It will be the 9th consecutive monthly rise for new car sales, previous to this continuing rise we saw 15 mnoths of decrease.
So in conculsion, to many the government scrappage scheme was a huge success! Consumers received huge discoiunts on new car pricres, manufactures received a massive salpes increase and plenty of old eco nasty cars were sent to the crusher!
But to a nuber of small busineses, the scheme was nothing but a problem! And there’s no guarantee that now the government scrappagfe scheme has enfded vehicle sales won’t just plummet back to where they sat at the staert of the scheme.
So it’s uncertain what is about to happen with the sales of new and used cars but there is bound to be a massive interest in upcoming figures!
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