NFDA urges dealers to campaign for more scrappage

The National Franchised Dealers Association (NFDA) is urging its car dealer members to write to their local MP as part of its campaign for a continuation of the scrappage incentive scheme.

MPs can put further pressure on Government to consider a continuation of the scheme, and demonstrate the extent of support within the industry for scrappage.

The NFDA is lining up meetings with Government to discuss the possibility of an extension.

NFDA chairman Paul Williams said: "With encouragement from dealers in their constituencies, MPs will be able to put pressure on Government to give serious consideration to extending the scrappage scheme."

Latest Government figures show that 195,009 cars and LCVs have been ordered through scrappage since it went live on May 18.

With sales continuing to grow, the Government’s £300m funding for the scheme is expected to be exhausted before the end of the year.

Williams added: "The scheme has been highly successful, but with the retail economic climate still fragile, demand still growing, and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital.

"Dealer support could be the key to enabling Government to see the advantages of such a continuation."

The RMIF argued us that as scrappage sales are purely incremental, the VAT earned on them has made it a self funded scheme.

"Indeed, if VAT were to increase Government could be in receipt of a surplus," said Williams.