Is the car scrappage scheme working?

According to an article in The Times online, the new car scrappage scheme appears to have had a positive effect on new car registrations.

The SMMT (Society of Motor Manufacturers and Traders) said

“We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations.”

The registration of new cars continued to fall in June but not at the rate that was expected and by the smallest decline since July 2008. Apparently 35,000 new cars have been ordered since the scrappage scheme was introduced back in April, so 1 in 5 people who ordered a new car were taking advantage of the scrappage scheme. Paul Everitt, chief executive of the SMMT said that the scheme has had a ‘very encouraging’ start but it was too early to evaluate the full impact.

However, some car dealers and motor manufacturers are still to be convinced by the scheme. A survey by Guardian Money showed that many new car buyers who use the car scrappage scheme could actually save more money if they were to simply look for the best cash deal and sell their car privately, pocketing the cash.

What are your views on this? Have you taken advantage of the scrappage scheme and did it save you money?

Add comment July 9th, 2009