Unique Auto

Posts Tagged ‘scrappage scheme’

Over recent years the used cars for sale sector has witnessed a drop in the amount of cashflow that is made. Used car figures were actually down by around £24 billion for the 2008 year, there were around 300k less cars sold then the previous years.

We all know that this was due down to the credit crisis that struck the whole world late in 2008. People began to panic and control their money and one thing in life that people could afford to cut down on was purchasing a car and we all know that the huge majority of people chose to drive a used car because they can get more value for their money.

Therefore what happened in 2009? And why is the used car market still suffering? Well I think that this all boils down to the vehicle scrappage scheme. Although it has been good in boosting the new car market, it has left the used car market trailing behind, the reason for this is as follows.

When people want to purchase a new vehicle,they in most times put their old one for sale, this then gets sold to a new driver who then passes it on once they gain experience. But because of the scrappage scheme people are rather choosing to hand it in to a participating garage and getting themselves a brand new car.

I do expect the used car market to get back on its feet in 2010, as the scrappage scheme will not last forever I mean in the end its the government who are funding it and it has probably already costs millions of pounds to save the new car market, but on the other hand it has hurt another market even worse.

Do you want to Buy an Audi or Buy a New Mercedes

Unless you have buried your head under a rock for the past few months you will be aware of the Government’s latest initiative to kick start the car market, whilst also raising awareness of ‘Green Issues’. This incentive scheme has been referred to as the Scrappage Scheme and has already proved to be successful in terms of increasing the number of new cars sold in this country. The general public have literally flocked in order to get rid of their old bangers and take advantage of the up to £2000 cash incentive towards a new car.

However, there is one small problem; even with the £2000 contribution from Government and the Dealership, a lot of families still can’t afford to splash the cash on a new car. The Government are really pushing their Green agenda, primarily concerned with getting old and environmentally unsound cars off the road. The remaining concern is that new cars are still vastly more expensive than used cars so the used will continue to sell well.

But shouldn’t we feel guilty about driving used cars that may not be as good for the environment as brand new ones are claiming?

The answer is simply No. Most cars made in the past 10-15 years are just as ‘Green’ as their 2009 counterparts. I have been driving a Used Audi for a few months and the Miles per Gallon ratio is identical to the new model, 4 years its junior.

So the choice of whether to take the Government up on their cash incentive offer is really up to you, there can be no Green-guilt. If you want a new car then it makes sense to trade in your old 10+ year model, but if you are interested only buying a Used Car, then by all means do that. It is no less Green to recycle an existing car. In fact, the manufacturing process to make the new car most probably offsets the carbon emissions you would have prevented. So essentially, the whole scheme seems like a bit of a paradox; or a waste of time, tax-payers money and guilt.