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Motability could be answer for 'challenger' marques post-scrappage

Sales into Motability, which were discounted by several manufacturers in 2008 and 2009, are beginning to come back into vogue.

The very low margins offered by Motability became too slender as the exchange rates pushed prices up last year. As a result manufacturers like Renault and Mazda stopped selling into the scheme.

Now they have returned, although under stricter rules to protect their profitability.

Now 'challenger' brands could also make moves into Motability to keep volumes high once the scrappage scheme ends, says Network Automotive.

Managing director Colin Bruder said: “Several challenger brands have seen their new car sales expand on the back of the scrappage scheme. While their volumes are inevitably going to fall off once the initiative ends in March, they are looking for ways to keep them as buoyant as possible. Motability is an obvious solution.

"Motability represents an opportunity for volume sales in a new car market that currently offers very few. There are signs of a gradual manufacturer return.”

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