I think from a consumer perspective (and probably from the perspective of the automotive industry too) the Scrappage scheme has been quite a successful idea. The publicity and successful marketing effort has seen thousands of people who otherwise wouldn’t have bought a new car heading straight to their local dealership, and the interesting variations of the idea with added savings have proved to be particularly popular.
Now, however, the Scrappage Scheme has all but run out, and all the car dealerships and manufacturers are starting to be left with a gaping and very conspicuous hole in their range of offers.
So, how will we cope?
Well, as consumers we probably won’t be affected all that much. We will think twice about exchanging our old battered car, particularly if it isn’t worth more than £2000 in part exchange, but generally it seems like that we will still get big savings and equivalent offers to tempt us in. We will probably carry on buying from the dealerships that continue the ethos of the scheme with big savings or Swappage, and any dealerships that can’t offer this will probably be avoided. The only difference for us, really, will be that we don’t have the big marketing push to get us into the dealerships to start with, so we will have to be tempted by something else – or we will buy cheaper used cars instead.
For the dealerships, however, the transition is likely to be a little more painful. A precedent has been set with the public that will need maintenance to keep sales figures up, and as such it is likely that many places will have to up the value they pay on part exchange, or risk the customer going elsewhere. A £2000 saving is now the flavour of the day, and without the government contribution it is likely that profits will fall and car dealers will feel the pinch.
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