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What will happen when the scrappage scheme ends

What Will Happen When The Scrappage Scheme Ends?

Figures just released show that new car sales have increased once again for the eighth consecutive month. The market in question grew by 26.4% compared to the same period last year showing that the Scrappage Scheme is still having a big impact on new vehicle sales.

There were a total of 68,686 new cars sold during February of which Scrappage accounted for 19.6%. Final orders through the Scrappage Scheme need to be placed by the end of March, so new vehicle sales are bound to drop off slightly.

Experts within the industry have predicted that the new car market will drop off by around 10% during the remainder of 2010, with a total years’ sales figure of 1.82 million cars.

So, it looks as though dealers must prepare themselves for a drop in sales as soon as the final Scrappage orders have been placed.  It looks as though the Scrappage Scheme has had its desired effect from the simple fact that it ignited the new car market.  The only question that remains to be answered is: What Will Happen to Both the New and Used Car Market When The Scheme Ends?

Manufacturers such as Hyundai done fantastically well in the scheme as they were able to offer motorists some really good value vehicles. Likewise motorists could get their hands on a cheap Kia when. Ford also sold plenty of Focus’ and Fiestas’ whilst other manufactures added additional discounts to the Scheme to try and encourage more vehicle sales.

So – perhaps some manufacturers will extend their own discount with the hope of attracting more new vehicle sales. One thing’s for sure and that’s the fact that there will be more used cars on the market as less will be scrapped, so used car prices will probably drop as the supply increases…

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