New And Used Cars Market In The Era Of Scrappage Scheme

This has been a month since the demolition has been established in the United Kingdom. This project is for people who trade in their vehicles (registered in Northern Ireland or the United Kingdom, more than 10 years), the new one. The main objective of the plan of £ 300 to improve the situation in the automobile industry, to promote the market for a used car in Northern Ireland and the United Kingdom and to encourage drivers to change models more environmentally friendly. After 30 days, it’s time to ask: What is it?

New cars sales

Since the system was introduced in the past month, with 60,000 orders for the driver to have people want to escape from the old car and their use of the 2000-pound recommended. This can be considered a success, and the numbers are better than expected. If asked to continue, the money from the government will end earlier than planned. The plan was for 300,000, and the driver through the end of March 2010, but found that 20% of the amount in the first 30 days! Many manufacturers have agreed on a plan to the satisfaction of them. Most orders to Hyundai (with best-selling Hyundai I10), Ford and Toyota. Representatives of government, also satisfied. Business-General, Mr. Peter Mandelson, the commitment of the issue: “The consumer knows that a good solution when you can see. (…) It is encouraging industries have demand. ” Most popular is one of the customers of smaller cheaper car.

Used car market

The situation on the used cars market in Northern Ireland and Great Britain may not be that bright. It is still too early to observe new trends, but is expected that auctioneers, car parts sellers and car garages will lose potential customers. Due to increased sales of new vehicles, the demand for used cars, car parts, and service seems likely to plummet for some time. Time will tell if those predictions come true.

The future

To sum up, it seems that the scrappage scheme works and those that predicted lack of interest are now proved to have been wrong. The number of customers who placed an order for new car has surpassed the expectations what makes automobile industry and government representatives satisfied. Another positive consequence is lowering emission of CO2 as the newer models that replace the old ones are more environmentally friendly. It is still uncertain, if the scheme will have some negative effects on the other industries in the long distance, as some commentators predict.

ulstercars.co.uk