Scrap means profits
May 20th, 2009 by Richard Aucock
INDEPENDENT car garages and dealers will benefit from the Government’s scrap scheme too, says the RMI.
It is not just franchised new car dealers that will profit from the scheme.
Independents who invent in training and equipment can harnass new opportunities created by the scheme.
The RMI’s Independent Garage Association has committed to a series of initiatives to aid this for members.
IGA chairman Jonas Zambakides revealed why: ‘Traditionally, new vehicles fall out of franchised service before they are 3 years old – whereas vehicles that qualify for the scrapping scheme have to be in excess of 10 years old.
‘At the same time there are approximately 9 million vehicles within the 10-plus age group; target vehicles within this number are further significantly reduced by current market values, which often exceed the government subsidy.
The last element for consideration is the size of the pot that the Government is making available – insufficient to cover more than 4 per cent of the total potential… leaving over 96 per cent of vehicles still in the market.’
It all means many worries are unfounded, he said.
Even so, ‘the independent repairer should consider this change, and start to direct their business towards a ‘shortening car parc’, and this will call for a focus in training and investment in new technology.‘
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Tags: aftersales, independent, scrappage, Scrappage
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