Most car dealers have reported an increase in new car enquiries as a result of the vehicle scrappage scheme, with middle-aged cash-buyers making up the majority of scrappage customers.
The results come from a survey by AM and the Retail Motor Industry Federation (RMIF).
The survey asked dealers to gauge what impact the scheme has had since it was launched last month, as well as who is buying, what they are buying, and how they are paying for it.
On the impact of the scheme on sales, the survey found that:
- 92.8% of dealers reported an increase in enquires on new cars following the announcement of the scheme.
- 48.5% of the vehicles being bought under the scheme are priced between £6,000 and £8,000.
- 22.1% are priced between £8,000 and £10,000.
- 66.9% of the vehicles being bought under the scheme have 1.0 to 1.3 litre engines.
- 19.1% of vehicles being bought have 1.3 to 1.6 litre engines.
- 63.7% of those buying under the scheme are aged 45 to 60.
- 27.1% are aged 31 – 45.
- 54.7% of dealers said that less than 25% of purchases are being made using consumer finance.
Sue Robinson, RMIF director, said: “Car sales should see a significant increase in the coming months as a result of the vehicle scrappage scheme.
“This will go a long way towards helping to revive consumer confidence, and the UK car market, making it a double win for buyers and business alike.”
Jeremy Bennett, AM editor, said: “Car buyers now have the knowledge they need to make a fully informed purchasing decision.
"It’s clear the scrappage scheme has released pent up demand which had built up as result of uncertainty as we waited for a decision on a scrappage scheme. It’s a great time to visit your local dealer to scrap a banger and bag a bargain.”