Dealers looking beyond the scrappage scheme

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We’re probably not the first to report it but the scrappage scheme juggernaut definitely appears to be slowing down. This somewhat unpalatable fact, coupled with dealers’ nervousness about being able to supply a car in time, is leading them to consider other ways of incentivising their potential customers into buying cars.

There is no doubting that all the publicity surrounding the return of 17.5% VAT and the final conclusion of scrappage scheme itself, has been the best marketing campaign the motor trade has ever had and definitely the cheapest. But what happens when dealers have to work hard doing their own marketing once more?

It will be interesting to witness how creative dealers will need to be when the brakes are applied in the early part of next year. As the new car and used car market once more plays a game of switcheroo, there seems to be a strong sense of used cars being the “way forward” and prices will inevitably rise again in January.

So, if you are in the market for a car, buying a new or used car before the start of next year will clearly be a viable option for many people and with dealers destocking to get cash in the banks for yearend figures it’s certainly an attractive proposition.

With some manufacturers rising to prominence next year it will be interesting to see how the big scrappage winners like Hyundai and Kia cope with the change in trading conditions and now they have had to ramp up production to cope with increased demand, how will they manage their supply in a much smaller market?

Will the deals they will inevitably be forced to give be as attractive as the “cash for bangers’ market has been?