Glass’s predicts car sales catastrophe should scrappage scheme end early

Trade guide Glass’s are warning car sales will collapse if the government doesn’t extend the scrappage scheme at least until next summer.

Glass’s predict if the scrappage scheme funding should run out early, as widely predicted by commentators, it will result in a massive reduction in new car orders with little prospect of an improvement until well into 2010.

Glass’s Managing Editor, Adrian Rushmore, said: ‘The government should urgently re-evaluate the planned discontinuation of the scrappage scheme in order to avoid a sudden, pronounced and damaging fall in business.

‘Consumer confidence will continue to be at a low ebb at least until next summer, and without the contribution of scrappage sales, the new car market will rapidly fall to the levels seen during the last recession, when around 1.6 million cars were sold each year.’
Glass’s also say that car dealers throughout the UK want the duration of the scheme to be extended, and the definition of what constitutes a 10-year-old car to be broadened to cover those vehicles registered on or before 28 February 2000 (V-plate).

The company also says there is a strong case for the scheme to apply to vehicles that have no MOT, provided they meet the age criteria.