Scrappage a Success!!

It has been noted that 9 in ten scrappage sales were additional sales that did not pull forward further sales. Less than 10% of scrappage scheme buyers were planning to buy a new car in the next few years, so the Government led campaign curbed the negative idea that the scheme would not encourage new sales, but merely bring sales forward to 2010.

It turns out that most scrappage scheme buyers would have more than likely purchased a used car if the scheme had not been in place, so it really did mean that the Government could remove the older vehicles from the road and replace with shiny new models. I believe that the Scrappage Scheme worked as a great economic stimulus for the country in times of economic struggles. Whilst I was in Australia they also did something like this, where anybody who had filed a tax return in the year of 2007-2008 received a cash stimulus to encourage people to put money back into the economy and give it the boost that it needed.

Now that the scheme has unfortunately ended, we are left with the dull prospect of less demand for a new car and an increase in interest in the used car supermarket, thus undoing the work previously done by the Government backed Scrappage system. One Firm mentioned their concern for the recovery of the economy after this scheme has ended, saying ‘both new and used car markets are going to emerge from recession slower than the mid-90s.’ The withdrawal of this scheme has also left many new car Dealerships with the task of creating fresh and exciting campaigns to try and steer people in the direction of a new car as opposed to buying from a used car Dealership.

Let’s hope that the new Coalition government listen up and provide the country with what we need to make not only the environment but our wallets as light as possible!