New And Used Cars Market In The Era Of Scrappage Scheme by:Jack Jones
It has been a month since the scrappage scheme was introduced in the UK. The project is aimed at those who would like to exchange their used cars (registered in Northern Ireland or Great Britain, older than 10 years) for new ones. The main goal of the 300 million-pound scheme, is to improve the situation in the automotive industry, stimulate the used cars market in Northern Ireland and GB and encourage drivers to switch to more environmentally-friendly models. After the first 30 days, it's time to ask: does it work?
New cars sales
Since the scheme was introduced last month, there has been 60,000 orders from drivers who wish to get rid of their used cars and benefit from the 2,000 pound incentive. This can be considered a success and the figures are better than expected. If the demand continues, the money offered by the government will end sooner than scheduled. The plan was designed to help 300,000 drivers and last till the end of March 2010, however it has turned out that 20% of the money has been consumed in the first 30 days! Many manufacturers have already commented on the plan to express their satisfaction. The most orders came to Hyundai (with best selling Hyundai i10), Ford and Toyota. The government representatives are also satisfied. Business Secretary, Lord Mandelson, have commented on the issue: "Consumers know a good deal when they see one.() It is the boost that the industry needs." The most popular with customers are smaller and cheaper cars.
Used car market
The situation on the used cars market in Northern Ireland and Great Britain may not be that bright. It is still too early to observe new trends, but is expected that auctioneers, car parts sellers and car garages will lose potential customers. Due to increased sales of new vehicles, the demand for used cars, car parts, and service seems likely to plummet for some time. Time will tell if those predictions come true.
To sum up, it seems that the scrappage scheme works and those that predicted lack of interest are now proved to have been wrong. The number of customers who placed an order for new car has surpassed the expectations what makes automobile industry and government representatives satisfied. Another positive consequence is lowering emission of CO2 as the newer models that replace the old ones are more environmentally friendly. It is still uncertain, if the scheme will have some negative effects on the other industries in the long distance, as some commentators predict.
To see comprehensive list of new and used cars for sale in Northern Ireland - visit http://www.ulstercars.co.uk
About the author
Jack Jones interested in automotive industry. He is an expert in biofuels and hybrid cars.