New scrappage scheme already exceeding expectations

New scrappage scheme already exceeding expectations 24 April 2009 The Government's recent launch of the car scrappage scheme appears to be far exceeding expectations, according to findings from car portal BuyYourCar.co.uk. The £2,000 incentive offered to motorists has already seen a significant increase in interest from those wishing to take advantage of the scheme. Since the scrappage scheme was announced by Alistair Darling as part of the 2009 budget, BuyYourCar.co.uk has seen the overall number of new car enquiries submitted through their website doubled. Despite some industry commentators showing concerns about the scheme, BuyYourCar.co.uk's findings have demonstrated that it is already stimulating overwhelming demand for both new cars and light commercial vehicles. There has been significant activity for most marques, including over 150 per cent increases in enquiries for Mercedes Benz, Audi, BMW and Honda enquiries, as well as 75 per cent increases for Nissan, Volkswagen, Toyota and Ford. Although the scrappage scheme was originally designed to stimulate demand for more environmentally-friendly cars, even marques such as Jaguar, Porsche, Aston Martin and Dodge have also seen a notable increase in enquiries since the scheme was announced. Commenting on the findings, Dave Long, BuyYourCar.co.uk's Managing Director said, "The announcement in the budget has resulted in phenomenal activity from consumers using the internet to take advantage of the scrappage scheme. Over the last 48 hours the number of car buyers submitting enquiries for new cars has doubled, showing that the Government's proposals to stimulate demand are working". He continued, "Opportunities for internet sales and distance selling have just increased massively. Most dealers are cautious when valuing part exchange cars without inspecting them first. The beauty of the scrappage scheme is that as long as a car qualifies, it doesn’t matter about its condition. It’s worth £2000. This makes selling far easier and the risk of over-valuing a car impossible." Under the scrappage scheme, vehicles more than ten years old are eligible to be scrapped in return for the discount from manufacturers that have opted into the scheme, and the encouraging findings could give the motoring industry a much-needed shot in the arm, as well as boost consumer confidence. Chris Haycock, BuyYourCar.co.uk's New Car Lead Operations Manager, said that there are clear opportunities for the industry to capitalise on the scheme whilst interest is high. "Both manufacturers and dealerships need to take advantage of the recent interest shown by consumers", he said. "Demand is so great that the number of enquiries being generated through BuyYourCar.co.uk is overwhelming, and our network of dealerships who provide quotes to our visitors are enjoying unprecedented volumes of sales leads generated through the website." Early indications show that the impact of the scheme could surpass the success found in Germany, where sales of new cars have reached record levels since the introduction of their own scrappage scheme.

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