Post scrappage

tiffin3665

Can anyone comment on whether it is anticipated that post expiry that deals on new cars will be better? I'm thinking in terms of the manufacturers bonus and whether discounts of that type might be seen.

Del2005

From what I've heard there may be less. A lot of dealers may be loosing franchises or closing down

-Chris-

Scrappage is money from the government, it doesn't affect dealer/importer margins. I don't see any reason there'd be better deals specifically because scrappage is over.
Some importers may want to make up their numbers in the second half of the year, or have some particular stock they need to sell, but imho it makes more sense to do the max deal during scrappage while the customer has the whole "free money" idea in their head rather than holding out until it's over.

Also, I think only about 15% of cars sold at the moment are on scrappage (not definite on this figure) and therefore 85% of cars are being sold as non-scrappage deals. What's going to change for these 85% of new cars between the end of June and the start of July.

tiffin3665

Thanks guys - I'm a novice at this.

In saying "Scrappage is money from the government", I was more thinking of the "manufacturer's bonus" which in most instances exceeds the scrappage from the govt. This is where I though there might be capacity for some post scrappage deals for those who could not avail - a manufacturer's bonus for all comers.

In addition, looking over the border and to the UK I see interest free offers and discounts. That's what got me thinking that scrappage was a distortion of the market generally.

maidhc

tiffin3665 wrote: »

Thanks guys - I'm a novice at this.

In saying "Scrappage is money from the government", I was more thinking of the "manufacturer's bonus" which in most instances exceeds the scrappage from the govt. This is where I though there might be capacity for some post scrappage deals for those who could not avail - a manufacturer's bonus for all comers.

The "scrappage" the likes of Renault offer is just heavy discounting by another name. If you dont have a scrap car you get it added onto your trade in, or if you are a cash buyer you will get it as a cash discount. No reason to suspect that will stop.

Our man in Havana

Faux scrappage will continue.