Car Scrappage Schemes Have Failed To Take Off
The motor industry is in a sorry state of affairs right now. In a bid to get buyers back into showrooms, mainstream brands have launched scrappage schemes offering discounts on new models when owners trade-in their older vehicles. Scrappage schemes are not a new thing for the motor sector. In 2009 to 2010, the government pumped 拢400 million of taxpayers' money into a state-sponsored scheme, offering big savings on new cars if drivers were willing to part with their old bangers. It was a huge success, with 396,000 new car sales generated, pumping new life into the beleaguered motor trade following the financial crisis. You can find out more about all of the offers still available until the end of March in our dedicated Scrappage Scheme guide. But it seems these deals have done little to excite buyers. Unlike the government-backed scrappage scheme, which offered consumers a standard 拢2,000 for an old car traded against a new model, the manufacturers' schemes available now each have different restrictions and discounts. If you are going to use one by the end of the month, do your research, because you'll not find two the same.
Of 1,300 car buyers polled by the motor purchasing site, just 23 - less than two per cent - had bought a car using one of the current scrappage schemes. In some cases you also need to have owned the car you want to trade in for at least six months, though some request an ownership period of just 60 days. Another 18 per cent who did own eligible vehicles said they opted against the deals because they found they could get a better deal by not going down the manufacturer-offered scrappage route. That comes as little shock. But the surprise finding of the study was that 479 people - nearly four in ten - who have bought a car since the schemes were available had no idea they were on offer. Perhaps it was a mistake also to use the same terminology for myriad different offers from multiple manufacturer brands as the government-backed scheme of nine years ago.
I agree with most of Austin's comments, other than the claim that new cars are already perceived as affordable under current offers. Surely for a scrappage scheme to be worthwhile it needs to improve the existing deal structure, not be limited by it. But furthermore, I think that fewer people actually want to buy a new car at the moment, which is backed up by figures that show a stall in registrations since last April. Motorists simply don't want to take up any car-buying incentives right now, which is the main reason why scrappage schemes have bombed thus far. And it's pretty obvious what's keeping motorists out of dealerships. Almost half of new car buyers - traditionally - want diesel in the UK. With so much negativity currently surrounding diesel, drivers are understandably unwilling to make purchases when vehicles don't have a secured future value. It's unsurprising then that not many people are willing to spend 拢20,000-plus on a car while the sector is so unstable.
What will fuel the next car you buy? Diesel Petrol Hybrid Electric What will fuel the next car you buy? Some of the scrappage schemes, like those offered by Peugeot, Citroen and DS, are even offering bigger discounts on a diesel powered model than the exact same car powered by a petrol engine. It all stinks of desperation to me. What motorists have been left with in the time being is a set of low-value offers masquerading as attempt to help the nation achieve its emissions targets by driving out dirtier, older vehicles. But as a result of these feeble discounts, what they've done is encouraged many people to keep hold of these vehicles for longer. What we really need is some transparency about what the future holds for diesel - and petrol. Once motorists have this clarity they will start considering buying new cars again, and if well incentivised, the ones ministers want us to own.
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