A recent report about the Car Industry in the UK, produced by Glass’s Automotive revealed that the now abolished vehicle scrappage Government scheme worked very well whilst it was in operation.
The study was conducted after the scheme came to an end and the data in the report was compiled from information received from car manufacturers. It appears that most of the people who purchased a new car in 2009 under the vehicle scrappage scheme would very likely not have done so if the scheme has not been operational. They would have been more likely to purchase a second-hand vehicle when they decided to change their car.
There is now doubt that during the last two years the UK new car market, like many other industries, is not as buoyant as it used to be and this report concludes that the vehicle scrappage scheme was a contributory factor increasing attendance at car showrooms of local potential purchasers.
In 2009 new car sales totalled 1.99 million but the report suggests that if purchasers did not have the benefit of the vehicle scrappage scheme they would have been approximately 1.78 million.
Since the scheme finished, new car purchasers have reduced unbelievably and the report suggests that the new car market will be in for a long haul recovery and that the second hand car market will also experience slow sales, not least due to the fact that trade in options are less attractive.
However, despite these findings, nearly new cars are selling well as purchasers can now obtain really good deals on reliable cars with the benefit of extended warranties that car manufacturers have been offering in recent years that can be transferred to the new purchaser. Some of these cars also have breakdown recovery included in the sale.
The regulations regarding the maintenance and service of cars with warranties has been relaxed recently which is another benefit that allows potential purchases to feel secure in the knowledge that the maintenance of the newly acquired vehicle, whether nearly new or new is affordable, especially since it is no longer necessary to have the vehicle serviced at a manufacturer’s franchise dealership.
The warranty will remain effective no matter where the car is serviced.