A scheme allowing motorists to trade in their old bangers for £2,000 off brand new cars has provided dealerships across the county with a vital shot in the arm.
Kent on Saturday contacted a host of dealers this week to see what impact the Government’s scrappage scheme was having after its launch this week.
Under the terms of the deal, buyers receive a total of £2,000 off the cost of a new car when trading in their well-worn wheels – providing they are at least a decade old.
The resulting surge in sales could not have come soon enough for many struggling showrooms as the car market strains under the weight of recession.
According to latest figures, new car sales were down 28.5 per cent in the first four months of 2009 compared with the previous year.
Adding further to the gloom was a recent survey from Parker’s motoring guide which suggested 81 per cent of people would not respond to the offer. But, despite industry reservations – which had led Ford and Honda to suspend taking up the deal – there has been a positive response from many dealers.
John Davies, of Hidsons in Gravesend, believed the buying incentive, which is jointly financed between the Government and dealerships, was having a positive effect.
He said: “It has been mad here. Hidsons has had the best three weeks it has ever had in a row. Sales of around 70 cars a week across the group is normally what we’d expect in
a month.
“I could never have imagined the kind of response we have had to this deal.”
The Lipscomb Fiat and Volvo franchise at Aylesford also revealed its latest sales figures have seen an encouraging upturn.
Spokeswoman Louise Baker explained that its range of smaller cars had proved especially popular: “We have seen some really good sales. With cars like the Fiat Punto and for Volvo there have been extra deals which give buyers around £6,000 off the cost of a new car, so things are very good for us at the moment and Volvo is having a National Scrappage Weekend today and tomorrow.”
Robert Hobbs, centre manager of Motorline Toyota in Canterbury, said the company had reaped the benefits from the new cash-for-scrap deal: “From our viewpoint this is a good thing and our orders are now up by 48 per cent. We are of course expecting this to be a spike in sales, but this will benefit us.”
Pick up Kent on Saturday today for our special scrappage supplement.
POSTED: 23/05/2009 02:00:00
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