Tuesday, May 5, 2009

Scrappage scheme restricted? (UK)


The small print of the Government�s scrappage scheme for new car sales could limit the �2,000 incentive to cars with a delivery time of less than 3months, a rule that could stop dozens of models from benefiting. Officials at the dealer body, the RMIF, will raise these concerns at a meeting with the government tomorrow, when the working details of the scheme will be hammered out.

�We think the key is flexibility because it will be an issue for some cars,� said an RMIF spokesman. �We are trying to make sure the scheme works.�

Market leader, Ford said some models, like the new Focus RS, would be affected if a three-month delivery limit was specified. One practical problem is that factories have pruned production so hard that a surge in demand has put special-order cars onto three-month or more delivery times.

Despite these uncertainties, dealers have reported a huge increase in enquiries for new cars. Hyundai is quoting a 400% rise, while traffic on Ford�s website in the four days after last month�s Budget equalled a normal month.

Click here to see how the new scheme works and who's part of it.

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