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Dealers welcome Government scrappage boost

Changes to the Government’s scrappage incentive scheme have been welcomed by dealers keen to sustain business through the traditionally slow final quarter.

The Government has topped up the scheme to £400 million from its original £300 million contribution, and has modified it to include pre-March 2000 registered cars and pre-March 2002 registered vans.

The change adds another 100,000 units to the original 300,000 maximum registrations. So far, 253,364 scrappage orders have been taken.

Ian Plummer, managing director of Renault Retail Group, believes the extension will bolster dealers’ turnover and volumes, although it won’t necessarily boost profitability for retailers or manufacturers.

“It’s got to drive more people into new cars, keeping more sales people busy in the showrooms and ensuring future work for technicians in the workshops,” he said.

Mark Lavery, chief executive of Cambria Automobiles, said: “We see it carrying business through to February now. It’s certainly to be welcomed. There may not be much profit in the sale, but we’ll attract them back for service and parts.”


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