Renault scrappage view
RENAULT reckons the end of scrappage will present a residual effect offering a small market opportunity.
The firm’s commercial operations director, Len Curran, has told Car Dealer Magazine he expects scrappage-type deals to continue for the next few months.
They will be, Curran explained, from the brands most active in scrappage. He named Korean brands, Nissan, Toyota and Fiat in particular.
But dealers shouldn’t expect exactly the same sort of offers they were able to promote under scrappage. ‘Everyone loses the Government’s £1000 contribution and the exchange rate means no one can afford to fund this from the manufacturer’s or the dealer’s margin, particularly because the volume is on lower margin cars.
‘The deals can’t be the same.’
Instead, Curran says a new type of deal will emerge. ‘It will be a minimum PX value dressed up as scrappage, with limits on what versions are included. It will last for a few months, maybe with some last gasp opportunities in September.
But after September? ‘Scrappage will have burnt out.’
Car Dealer Magazine is already seeing these sorts of deals emerge, with Toyota’s Swappage scheme and Hyundai’s Trade & Upgrade scheme already grabbing the headlines.
What are your expectations for the coming post-scrappage months?
SUBSCRIBE TO CAR DEALER MAGAZINE TODAY TO RECEIVE OUR POST-SCRAPPAGE SPECIAL ISSUE
Tags: new car scrap, scrappage