Dealers demand help
September 11th, 2009 by Richard Aucock
CAR dealers should appeal to their local MPs in order to win an extension to the scrappage scheme.
The RMI NFDA is advising all car dealers get in touch with their MPs, as part of a concerted campaign.
Just the job to really get Government thinking, reckons NFDA chairman Paul Williams.
‘With encouragement from dealers in their constituencies, MPs will be able to put pressure on Government to give serious consideration to extending the scrappage scheme.’
It would highlight to ministers just how strong the support and demand for scrappage really is, he adds – in advance of meetings the NFDA has lined up with Government, to discuss a scrappage extension.
‘The scheme has been highly successful, but with the retail economic climate still fragile, demand still growing, and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital.
‘Further, our research tells us that as these sales are purely incremental, the VAT earned on them has made it a self-funded scheme. Indeed, if VAT were to increase, Government could be in receipt of a surplus.
‘Dealer support could be the key to enabling Government to see the advantages of such a continuation.’
Many experts reckon the £300m scrappage fund pot will be empty before the end of 2009.
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Tags: mp, new car scrap, nfda, rmi, scrappage