Scrappage scheme helping new-car dealers and could benefit used car dealers too

A host of car dealers are witnessing a rapid increase in the number of motorists paying a visit to their showrooms as a result of the beginning of the upcoming vehicle scrappage scheme.

The scheme gets underway on May 18th, with motorists given the chance to add their ten-year-old vehicle to the scrap heap in exchange for a £2,000 discount on a new car.

Sue Robinson, director of the Retail Motor Industry Federation, revealed: "Consumers have already shown great interest in the vehicle scrappage scheme, with dealers reporting a marked increase in enquiries since the scheme was announced in the Budget in April."

While this may be good news for car dealers trading in new cars, the implementation of the scheme is unlikely to harm the number of vehicles used car dealers could see driving off their forecourts.

Glass’s has argued that the type of motorist interested in becoming involved in the scheme is different to that looking to buy a used car that is either a year or two old.

It is believed that those considering an almost-new car will now have a vehicle old enough to feature in the scheme and will thus continue their search for a used car that takes their fancy.

Adrian Rushmore, managing editor at Glass’s, has also indicated that there are other reasons why used car dealers could be beneficiaries of the scrappage scheme.

He said: "The scrappage scheme is likely to increase demand for new city cars and superminis more than any other type of car.

"Many of these cars are already in limited supply, and the expected additional demand will merely serve to extend delivery lead times.

"Customers not eligible for the scheme will also find themselves joining lengthening queues, and are therefore more likely to consider a late-used alternative."

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