Removal of scrappage incentive will hurt new car sales
12 May 2010

New car sales in the UK are expected to be down this year - but only because of the ending of the scrappage incentive scheme.

Car maker's body the Society of Motor Manufacturers and Traders (SMMT) has announced that 395,4999 new car registrations have now been processed under the scrappage scheme, and that the scheme accounted for 18.1 per cent of new car sales between May 2009 and March 2010.

However, scrappage registrations in April accounted for just eight per cent of sales - the lowest number while the scheme ran - and the SMMT says this suggests the new car market will remain buoyant without the incentive.

“The scheme helped support our economy and played a vital role in providing a much-needed boost to the UK automotive industry," said SMMT chief executive, Paul Everitt.

"Our latest registration forecasts suggest the 2010 market will perform better than expected, but will appear subdued compared to the peaks achieved during the scrappage scheme.”

The SMMT also revealed that average CO2 emissions of a car bought through the scrappage scheme were 132.9g/km of CO2, more than 27 per cent below the scrapped car’s figure and 9.5 per cent below the overall new car market average.

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12 May 2010

New car sales down in 2010??? Now there's a surpise...I would have though after the scrappage scheme this would be obvious?

12 May 2010

When's the next scheme going to start then?, could be an annual event for a few years yet, don't you think?

Peter Cavellini.

12 May 2010

So, Hyundai sales will plummet. Oh dear.

12 May 2010

[quote CambsBill]CambsBill wrote the following post at Wed, May 12 2010 8:50 PM:

So, Hyundai sales will plummet. Oh dear.

[/quote]

Not necessarily. Hyundai are running their own self financed scheme giving a £2k trade in price for any car over 7 years of age. My Mum just chopped a 9 year old Suzuki Swift for an i10 under the sheme. Dealer was rushed of their feet chucking them out.

12 May 2010

[quote tannedbaldhead] My Mum just chopped a 9 year old Suzuki Swift for an i10 under the sheme. Dealer was rushed of their feet chucking them out.[/quote] If anything Hyundai dealers are busier as they have lifted the aged limit.

12 May 2010

[quote rosstopher][quote tannedbaldhead] My Mum just chopped a 9 year old Suzuki Swift for an i10 under the sheme. Dealer was rushed of their feet chucking them out.[/quote] If anything Hyundai dealers are busier as they have lifted the aged limit.[/quote]

Not making much money on each car. The salesman told me he was only making £25 a bonnet on the i10 but was doing OK as he was selling so many. (Rosstopher will have a better idea if that's bollocky BS or not).

12 May 2010

[quote tannedbaldhead] (Rosstopher will have a better idea if that's bollocky BS or not).[/quote] Probably true but with back end money, over target bonus and add ons (finance, gap, paint protection) they'll be making a few quid. Plus looking at the long term picture the services departments will be chocka in a years time. It's a good long term business option.

13 May 2010

[quote rosstopher][quote tannedbaldhead] (Rosstopher will have a better idea if that's bollocky BS or not).[/quote] Probably true but with back end money, over target bonus and add ons (finance, gap, paint protection) they'll be making a few quid. Plus looking at the long term picture the services departments will be chocka in a years time. It's a good long term business option.[/quote]

Yup I got the impression he was doing well. He was a young lad and seemed to be really enjoying the buzz of the showroom being so busy.

13 May 2010

[quote tannedbaldhead]Yup I got the impression he was doing well. He was a young lad and seemed to be really enjoying the buzz of the showroom being so busy. [/quote]

I know a lad who works for Hyundai, he's really loving life, he's never earned so much!

It's like the taps have been turned off for a lot of other dealers though.

13 May 2010

[quote rosstopher]I know a lad who works for Hyundai, he's really loving life, he's never earned so much![/quote]

Nice to know that at least one gel-haired wassock in UK is getting his rocks off selling sh!t-boxes, deliberately dumped at below economic cost by the Koreans, to destroy European workers' jobs. Meanwhile, in an alternative universe, for the vast majority of UK's citizens, the macro picture just went fully off a cliff:

TRADE DEFICIT GROWS TO GBP 7.5 BLN (EST GBP 6.5 BLN) -- ONS

http://www.automatedtrader.net/real-time-news/40491/uk-march-goods-trade-deficit-grows-to-gbp-75-bln-est-gbp-65-bln-__-ons

'Car imports continued to rise, as well, in the final month of the UK's car-scrappage scheme.'

http://www.statistics.gov.uk/cci/nugget.asp?id=199

'Excluding oil and erratic items, the volume of exports fell by 1.8 per cent but the volume of imports rose by 3.5 per cent, compared with February. - worst figures in recent history?

Export prices rose by 2.9 per cent and import prices rose by 2.7 per cent, compared with February.' - that's hyperinflation folks; +30% annualised price rises in imported raw materials and intermediate goods. You're gonna get shafted by massive price rises in staples this year, worse than already.

Thanks partly to all those sh!t-boxes imported for Darren to get his rocks off UK's trade deficit for March came in £1 bn worse than predicted by the 'experts'. This means, even during flat/falling real economic output, UK has gone on a huge spending bender, mainly of imported wares, further underlining UK's bustedness, and meaning the pound has to fall further to realign trade competitiveness.

This of course is false, and won't happen, as the largest recent fall in the pound's history, of 25%, from 2007-9, has only sucked in higher-priced imports and maximised profit margins for the few remaining UK exporters. The little picture says - 'Good on you Mr Hyundai salesman, fair play to you'; the big picture says - 'UK citizen still thinks the world owes him his consumption, on borrowed money, and in-fact many still think the worst is now behind them'.

Boy, are you saps gonna get a shock when Osborne whacks VAT to 20%, capital gains to 40/50% and the EU/IMF impose Greece/Ireland/Spain type wage cuts for the public sector. But not to worry Darren's really loving life! LOL, as the youths would say.

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