Trade guide Glass’s believe scrappage scheme wont impact residual values

MotorTrader.com reports that the trade used car price guide Glass’s believe that the scrappage scheme announced in yesterday’s Budget is unlikely to have a “significant” impact on used cars’ residual values.

Glass’s were countering speculation that the prices being asked for nearly-new cars would appear prohibitively high next to the price of new cars discounted under the scrappage scheme.

Glass’s managing editor Adrian Rushmore said most of the vehicle manufacturers’ £1,000 contribution is already on offer to potential car buyers in the form of sales discounts and incentives.

“The manufacturers’ scrappage bonus will largely replace these incentives, not supplement them, and today’s used car values already take full account of current low transaction prices on new cars.

“While we expect values to ease back during the summer months – as they would during any typical year – we do not forecast any further increase in rates of depreciation as a result of the introduction of the scheme.” Full story…