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Independent garages can benefit from scrappage, says IGA

Independent garages that invest in training and equipment will be in a good position to take advantage of any changes in the motor industry that result from the introduction of the vehicle scrappage scheme, according to the Independent Garage Association (IGA).

 

IGA is launching a series of initiatives that will help IGA members bring these changes into their businesses.

IGA chairman Jonas Zambakides said: "The scrappage can be a positive move for the independent repairers. Traditionally new vehicles fall out of franchised service before they are three 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 nine 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 four per cent of the total potential leaving over 96 per cent of vehicles still in the market.’

Zambakides added: "Change always alters our businesses but the impact of the scrappage scheme will prove to be less dramatic than many are suggesting. However 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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