Professional Engineering (!) includes an article on Scrappage.
Information included in the article includes:
* 400,000 new car registrations credited to scrappage
* 85% of cars registered under scrappage were imported
* Big winners were Hyundai and Kia
* Hyundai have doubled their share of the UK new car market
* UK car sales up 26.6%
* Jaguar Landrover sales up 43% last month on March 2009, 3% due to UK scrappage, 80% of last months sales went for export.
In addition German car sales up 23.2% due to their scheme, many of these were imports.
At an average price of £8k the sales generated £100m in VAT
So did scrappage benefit the UK motor industry, or the exchequer.
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>> * Big winners were Hyundai and Kia
>> * Hyundai have doubled their share of the UK new car market
BUT what now?
scrappage has ended, their sales will now drop, maybe not to their old share, as more people 'know' of them, but it will drop.
then what?
their dealers have geared up to higher sales, improved and enlarged the dealerships, TBH Im not convinced all Hyundai and Kia dealers will survive long term.
IMHO scrappage was always bad news, only a short term fix at best.
Last edited by: swiss tony on Sun 25 Apr 10 at 18:15
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Yep and loads of folks have ended up trading in fairly reliable comfy middle range cars for the most basic Korean models as, at the time, the cheapest price to upgrade was seen as crucial.
We looked at scrappage and realised once you speccd up and wanted a diesel there was better value to be had by other methods.
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It is an odd attitude, but not an uncommon one, to prefer to buy a new, not-very-good-car rather than a mildly second hand quite good one.
My father-in-law was a case in point. He retired in 1998 and bought a new Proton Compact for something like £7.5k I want to remember. We all tried to persuade him not to but he was determined to do it. At the time that would have bought a very good second hand something-quite-nice.
He suffered that heap for eight years until it was mercifully written off without injury to persons.
Thankfully he replaced it with a not very second hand, slightly sporty Fiesta with which he is delighted, and admits he now enjoys his driving again.
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"TBH Im not convinced all Hyundai and Kia dealers will survive long term."
Bit like their cars then:-)
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Thankfully I bought the Colt then.
M
Last edited by: VxFan on Mon 26 Apr 10 at 00:08
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Just be thankful you're not in Spain - the Hacienda (Spanish HMRC) has just decided that the scrappage discount has to be treated as income subject to tax! Don't tell Alstair Darling.
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>> Don't tell
>> Alstair Darling.
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Do you think he will still be there in two weeks time?
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>> Do you think he will still be there in two weeks time?
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If my name were
Alastair and Darling
in one breath
I'd buy a Gun
Track down me Mum
And shoot the Cow to death!
Whatever...............
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>> "TBH Im not convinced all Hyundai and Kia dealers will survive long term."
>> Bit like their cars then:-)
Wot about my '94 Kia Pride?
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Good news for who ? - swiss tony
