Interesting that one Scottish dealer has announced record profits in scrappage year.
tinyurl.com/34d7pvt
I thought that the economy was in decline and the point of the scrappage deal was to try and keep the motoring industry's head above water, not produce such big rises in profits?
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I very much doubt if the originators of the scrappage scheme had the slightest inkling that it would prove to be so popular.
It's not really surprising though, since it enabled many people on relatively modest incomes to achieve one of the goals of modern life, ownership of a brand new car.
My neighbour's son owns a busy local garage; his view is that it has actually increased the quality of his business, since he now spends far less time keeping hopeless bangers on the road.
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The way i read that article, Arnold Clark seem to put their good fortune down to the constant rise in used car values, and not really from scrappage despite the large volumes involved.
The seem to be saying that lower production of new has caused shortages of cars and therefore higher prices.
Look at Ratties new Panda, i'm sure he said he would only have saved about £500 if he'd had a scrappage deal...i wonder how many people talked themselves into finance deals they can't afford because the £2K carrot was dangled.
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Had mine involved finance I probably wouldn't have bothered. Fortunately we had enough in the kitty to pay cash. I think the 5-year warranty was the main draw for me, added to the fact that the i10 was a far better car than I'd originally imagined it to be.
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The scrappage scheme has now finished. Master stroke by the government of the day to help car industry. Extra money in sales outwieghed the money put in a winner all round. But what now its stopped its now up to the manufacturers what are they to do ?. What can we expect.
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It was a con anyway under scrappage I was offered.
£5400 for a Panda in met blue at 13% APR plus I would have to take out GAP at £350.
My Corsa did not qualify in time I so I bought the same Panda without scrappage from a different dealer (81 miles anyway) for £6500 but no mention of GAP (took it out myself £150) and the loan was just 10% APR.
I also sold the Corsa for £250 so all in all I am no worse of than I would have been from the scrappage scheme and with the HG now fixed by the buyer of the Corsa my old car is now happily on the road again :).
I feel very strongly that all scrappage has done is taken a lot of good cars of the road and left the real sheds still on. If you drive a real shed you often do so because you can't get credit
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>> If you drive a real shed you often do so because you can't get credit
Hello :-)
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The Scrappage scheme was cynical short-termism by the Gubbermint and the manufacturers. Yes they boosted their sales in 2009 but at the obvious detriment of sales in 2010, 11, and 12. And they mainly sold the cheaper, less profitable models to boot.
How many people brought forward their desire to purchase a new car, and now will keep it for 5+ years, or more likely be forced to keep it because they are tied up by finance?
The car market was put on speed for a year, now watch it slowly come round to reality with a sore head and a hangover!
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By real shed I don't mean an old car with little value, I mean a barely legal or even ilegal shed, worn suspension, ilegal tyres etc :).
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Although profit nearly doubled, turnover dropped 3.2% so in a way the economy is in decline. Arnold Clark managed to increase their profit even with a drop in turnover, but there are many ways to increase profit for a single year. They might have sold some of their assets.
Last edited by: L'escargot on Fri 14 May 10 at 07:02
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Scrappage scheme results - Harleyman
