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AM poll: Should the Government re-introduce a scrappage scheme?

Dealer opinion on whether the Government should re-introduce a scrappage scheme to the UK.

Dealer opinion was in favour of reintroducing a scrappage scheme, but it's not a massive majority with 67.8% for and 32.3% against.

Add your view at the bottom of the story.

YES

"Despite manufacturers trying to replicate the high cash offers they have never captured the imagination of the general public like the scrappage scheme did."

"Stimulus in the motoring industry would have a far reaching impact on the wider economy."

"How often do we get the chance to operate with a real win/win programme? There are no silver bullets, but giving the industry the opportunity to drive more sales into the market and increase the now 20% VAT intake, must be a good plan."

"If structured correctly the VAT benefit will make it
self-funding."

"Dealers have learned how to retain the customer in the networks better since the last scheme."

"The motor industry needs an injection to get it moving again, scrappage is a logical answer. Either that or reduce VAT to 15%."

NO

"The market should be left to find its own level and it should be driven by new product. The call for scrappage could cause customers to delay purchasing and cause more damage than good."

"We cannot justify it at current sales levels. We have to learn to trade in these economic conditions."

"It is a market distortion and a massive taxpayer subsidy for the Korean economy."

"They need to reduce the VAT margin on used car profit and overhaul the business rate regime, then get banks lending to the motor sector who are not in the AM200."

"The industry is rightsizing after years of being pushed by manufacturers dumping excess stock in the UK."

"During the last scheme, there was a significant drop in used car profitability, which was not compensated through the increased new car volume."

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Comments

  • Weave - 28/08/2012 19:47

    The scrappage scheme isn't right for our economy. Sure, there will inevitably be winners within our Motor Industry but at what cost and whenever did we operate in a market that needed subsidy? Small car manufacturers were the winners last time & no doubt would be again. We would see price hikes in small new cars (just like last time) as some manufacturers recognise the availability of government money to subsidise their sales rate and the Manufacturer would take much of the subsidy to the bottom line. What's wrong with that? Well it's not good for the UK balance of payments for starters, Peugeot, Renault, Citroen, Toyota, in addition to the already mentioned Korean manufacturers are the ones that would profit most. Add this to the reprehensible shortage of "proper" cheap used cars this created last time and the outrageous waste of decent product "simply because it qualified for scrappage it was scrapped" scenario that became evident also. Scrapage is not the right way to go. A cut in Used Car VAT? Well maybe? Certainly this would improve used car profitability and/or allow greater dealing room for deals being done, (dealers being dealers we are all guilty of "giving it away" sometimes) If used cars therefore became easier to deal in profitably then there would be a knock on in to New cars also. Win/ win ? Of course if this additional business helped increase volume appreciably then after sales departments would also benefit, win/win/win ! And dare I say if there is more volume around within the main dealer operations, they are more likely to feed some additional older cars through to the trade/ independants, - Could this be win/win/win/win? One thing for sure though scrappage and taking cars away from the market for ever will only ever create a main dealer/ manufacturer positive and then in only certain corners but will result in the general trade being starved ever more. Kind regards to all. Weave

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  • k Moores - 28/11/2012 18:02

    Yes fetch the scrapage scheme back

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