Scrappage is not working
It was, perhaps, a good thing last year, when the Government refused to plough valuable tax payers’ cash into another car scrappage scheme. The decision was proven to be a prudent one because, once car manufacturers put their begging bowls away, they found that they had sufficient cash reserves after all to offer their own deals.
Back in 2009 and 2010, the original British scrappage scheme that cost £400million was promoted as helping to drive business and make it easier for the public to operate a more environmentally-friendly car. Now, we are discovering that many of these vehicles sold at that time are not quite as ‘green’ as was thought. Once again, we are being encouraged to junk them now and buy another new car that really is kind towards the environment. Should we trust the same rhetoric again?
The public appears not to be fooled and the most recent scrappage schemes have failed, generally, to impress the market. According to online retailer, BuyaCar.co.uk, customers are both confused and sceptical about whether, or not, manufacturer scrappage deals offers the best value to them. The growth of finance options and low interest rates means that it has been much harder to sway new car buyers with deals than it was before and immediately after the financial crisis.
The website’s own research indicated that, out of 1,300 motorists surveyed, just 23 (representing 2% of the sample) bought a car using a manufacturer’s advertised scrappage allowance. Almost 18% of respondents discovered that scrappage discounts did not provide the best value and over 40% stated they had found that they were not eligible for a scrappage scheme.
The lesson is clear – compare any scrappage scheme options against other deals being offered, because you might find that the best value lies elsewhere.