Scrap effect ‘to come’
July 6th, 2009 by Richard Aucock
SCRAPPAGE is still some way off revealing its true positive boost to new car sales, say car dealers.
The RMI reports that the SMMT sales figures for June are positive – but car dealers can expect even more gains in coming months.
‘The true impact of the vehicle scrappage scheme will be felt over the next few months, as the volume of orders made via the scheme are processed, and consumers receive their cars,’ said RMI director Sue Robinson.
This is because of the natural delay between ordering a car and taking delivery.
‘It can take up to two months for a new car purchase to go from the initial order to the delivery to the customer, so most of the purchases made under the scrappage scheme have yet to translate into sales.
‘We expect the full impact of the scheme to make itself felt from next month onwards.’
Indeed, by August, the overall effects of the scheme should be far clearer. The Government imposed a four-month deadline for car dealers delivering cars under scrappage. If they miss this, the £2000 customer fund is voided.
Are your experiences matching the positive upturn reported by the RMI? Be sure to let us know, by the usual means…
Car production down, but decline lessens
Tags: new car scrap, rmi, scrappage, SMMT
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