Motorists Could Be Set To Benefit From A Scrappage Scheme
Needless to say, the coronavirus hasn’t done much for consumer confidence in the car industry. Now, UK bosses are calling on the government to introduce a national scrappage scheme…
An Industry Boost Through Scrap?
What would it take to get you into a new car? As it stands, getting a new set of wheels probably isn’t a priority. Which is why automotive bosses in the UK want the government to step in. Their reasoning is simple, introduce a scrappage scheme and incentivise the act of upgrading one’s motor.
Speaking to ITV news, Andy Barrett, Ford’s UK boss, stressed the need for government support in kick-starting the industry. He said, “it’s Ford’s view that it’s necessary we have stimulus in the market to help customers come back with confidence. That may be a scrappage scheme or something similar. But without a doubt some kind of stimulus is really needed to get the car business moving in the UK again.” Barrett believes a state-sponsored stimulus is also needed to ramp up production. He explained, “without any degree of stimulus there’s no doubt that we can’t keep the factories running on UK demand levels as they are. Other countries around Europe are bringing stimulus in so manufacturing and production will move elsewhere”.
Mike Hawes, SMMT Chief Executive, agrees that a scrappage scheme is the way forward. He said, “people haven’t been able to buy cars or have orders delivered during lockdown so the immediate priority is to reopen showrooms to fulfil this pent up demand. He added, “the time will come when government may need to assess measures to stimulate consumer confidence but the first step to recovery for this market is to let dealers get back to the business of selling cars, as they can do so safely”.
How Do Scrappage Schemes Work?
Scrappage schemes are a simple way of encouraging people to get a new car. Drivers are offered a cash payment or a discount on a new car if they ‘scrap’ their old one. Historically, they’ve been offered by car manufacturers and various governments; being used to increase business or take older (and more polluting / dangerous) vehicles off of the nation’s road network. Usually, these schemes chop around £1,000 – £2,000 off of a car’s price; but naturally, figures can vary wildly spending on the scheme. Either way, if you’re considering getting a new car and there’s a scrappage scheme underway, it could be a great way of saving a significant amount of money.
20% Of Motorists Say They Will Drive Less After Lockdown – https://autoserveclub.co.uk/blog/20-of-motorists-say-they-will-drive-less-after-lockdown/
Mayor Of London Wants National Diesel Scrappage Scheme – https://www.autoservefleet.co.uk/latest-news/national-diesel-scrappage-scheme/
