That was almost a year that the automobile industry has advocated government assistance ! Manufacturers were confident they could go bankrupt and were urgent for the government to do something about it. The recession has affected all small and large industries , but nobody wanted to buy the new car manufacturers were in great danger. In May 2009 , the Government introduced the " car scrappage scheme "
How does it work ?
When buying a new car, there was an opportunity to exchange their current vehicle (provided that was 10 years) to be scrapped and in return , you will then receive a discount on a new car books in 2000 ! The idea was that it would encourage people to buy new cars and remove more ( less environmentally friendly ) cars from the road.
The government-funded program ended last month and the results showed that turned out to be a great success. SMMT (Society of Motor Manufacturers and Traders ) recently released the final figures of the regime showed that about 380,000 vehicles were sold through the initiative!
Although it was a success for some , apparently , did not help at all . There is a little over a year I'm sure if you look in your local business directory that found more than a dozen announcements such as " we buy cars for scrap. "
Many small businesses provide a service break for local customers , if you look now , however , there are a very limited number of additions and I think it would definitely be scrapping has done little to help these companies .
The car scrappage scheme would have been very difficult for these companies to purchase vehicles at a profit . And I'm sure the sales of used car scrappage scheme have also been significantly affected by the plan. So it was really a success?
Well, even if the system has contributed to 20 % of sales during his career, also has caused used car scrappage scheme prices to increase dramatically. Now the procedure is finished , many manufacturers offer a "Maximize exchange regime " which is basically their version of the scrapping of the government.
At current sales of new vehicles continue to rise, but he believes there will be a decline in new car scrappage scheme sales and a strong increase in sales of used vehicles . March 2010 sales figures officers must show continuous increase . This will be the ninth consecutive month of car scrappage scheme sales , before the steady increase we saw 15 months of decline. So in conclusion , for many, the scrapping of the government was a great success ! Consumers have received large discounts on new car scrappage scheme prices , realizes benefited from increased massive sales and a lot of nasty dirty old cars were sent to the crusher !
However, a number of small businesses , the plan was not a problem ! And there is no guarantee that the government scrapped vehicle sales ended not only fall back to where they were at the beginning of the plan. Therefore, it is unclear what will happen to sales of new car scrappage scheme and second hand , but is linked to a massive turnout figures come!