Jun
30
Last months new car sales figures have shown no effect of the Government’s £300m car scrappage scheme after it was announced that the market suffered a 24% drop in new car sales.
The Government’s car scrappage scheme is a system that provides consumers with £2000 if they scrap a car that’s over 10 years old for a new model. These scheme launched in May and strated hitting road bumps from stage one. There were arguements over costs which lead to Ford holding off on their involvement.
Even with the introduction of the new car scrappage scheme, the UK has now suffered a streak of 12 months where the car market has suffered losses. This doesn’t reflect the overall idea that consumer confidence is recovering.
A total of 35,000 new cars have been ordered through the scrappage scheme, according to The Society of Motor Manufacturers and Traders, however, they say that it would take some time for this number to affect the sales figures. They also used the excuse that a number of consumers are looking around for the best offers before buying a new car.
The Ford Fiesta came out the most popular car last month out of a total 134,858 sales. Only 15,386 of the overall sales were from Vauxhall after they suffered a 40% drop in sales.
One reason for the major drop in sales is down to corporate sales of new cars. Car leasing companies that offer a range of makes, such as Vauxhall leasing and BMW leasing, are reducing the amount of cars they are buying because they are also suffering from the economic crash.
Car leasing companies are finding it difficult because when a consumer wants to get a new car, they rarely consider the leasing options which can generally be cheaper than buying your own car. Plus, with the new scrappage scheme encouraging people to buy a car rather than consider the other options that are open to them.
