Scrap scheme sales aid
October 20th, 2008 by admin
INCENTIVES to scrap older vehicles could encourage motorists to shift into brand-new eco cars says, the RAC Foundation.
Such incentives have already been seen in France and Italy, usually taking the form of a cash discount financed by the Government.
Here, the RAC Foundation reckons incentivising cars aged 17 years and older would be the ideal. This would take non-catalysed models off the roads.
The positives for dealers are clear. The Foundation admits there would be a ‘double benefit of boosting the new and second hand car industry.’
But the ideals of the scheme is at odds with current Government thinking – next March, the ‘showroom tax’ comes into force. That’s the one-off payment on road tax for many new models, which may discourage new car sales.
The credit crunch is also affecting sales of brand-new models. Both of these factors, says the Foundation, would be overcome by a scrappage scheme.
Incidentally, fascinating additional data from the Foundation’s research also shows that a vehicle purchased brand new typically replaces a three year old car, which has been traded in on the basis of age and mileage.
Most new cars, it reveals, are traded in within 4 years. Maybe it’s time to fire up your customer database and run a mailshot?