Scrappage vital
September 21st, 2009 by Richard Aucock
PRICE rises and VAT increases have signaled yet another call for an extension to the scrappage scheme.
What Car? says scrappage must be continued, as ‘car buyers face sizeable price increases over the coming months.’
Already, new car prices have risen by nearly 10 percent in 2009, says the title. Used car prices are up even more – 30 percent!
AT LEAST 2.5 percent will be added in the new year, if the Government puts VAT back up. Some commentators are speculating the rise could be even more, though.
Further falls in the value of sterling could also force car makers to put list prices up before the end of 2009.
It’s leading to ‘a perfect storm for car buyers.’ Which the Government can offset – without costing it a penny.
What Car? editor, Steve Fowler, said ‘Every car sold over £7650 covers the £1000 Government incentive and puts money into the Chancellor’s coffers.
‘Extending the scheme is likely to cost the Government next to nothing.’
It’s thus a no-brainer. Will the Government see it this way?
Scrappage: Mandy meets dealers
Tags: government, new car scrap, scrappage
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