The Scrappage Scheme Initiative
May 28th, 2009 | by myarticlenetwork |Over the last few weeks the government announced that they would be injecting cash into the dying car industry, this would be done by the vehicle scrappage scheme, where the government give people £2000 towards a new car, half being from the governments pocket and the other half coming from manufacturers, but only of course if their car is older than 10 years. So a few months on, has the scheme been working? And is it good news for customers and dealers? Let us take a brief look.
A poll has shown that a lot of people especially dealers are unhappy with the overall scheme. They have stated that there is a lot of work involved in the process that makes a dealers life a hell, they go on to say that although it may be good for the actual manufacturers and almost a million jobs, dealers are having a very hard time with it all.
One dealer stated The showroom would on a normal day make a profit of around £800 per car sold but under the scrappage scheme they make £416 and, while they are selling between 30-40pc more, the fall in unit profit negates the rise.
But looking at this from another view, it is great for customers because they will be getting much better deals then usual.
So in terms of the scrappage scheme working to push the economy it is working great and saving jobs in the process, but for the administrators and dealers it is causing them a huge amount of more work then they would usually have to do. As for the consumer, a lot of people could be getting a great deal.
Do you want to Buy new cars Buy a Porsche or Buy a Renault