Effect on Scrappage scheme still Awaited
The outcome of the government’s scrappage scheme has not yet taken off in the real sense. The statistics of new car sales shows this very clearly.
Based on the authorized statistics received from the Society of Motor Manufacturers and Traders (SMMT) the sales of new cars slumped to 134,858 in May. This decrease in sales is for the 13th successive month. This only shows that sales have not yet picked up when compared to the quarter at the same time last year.
A study conducted by the Retail Motor Industry Federation (RMIF) and the trade union for 8,000 motor retailers says that 92.8% of dealers have stated that there is an increment in enquires for new cars after the declaration of the scheme.
The study also disclosed that 67.3% of purchasers who are trying to take advantage of the strategy are in the age group of 45 to 60 and 66.9% of the vehicles which is being purchased under the strategy are with 1.0 to 1.3-litre engines.