Car scrappage scheme leaves a hole in used-car sales

By Graham Ruddick 700AM GMT twelve Mar 2010

In 2009, 6.8m used cars were sold, down 5.7pc on 2008 and the slightest given 6.71m were sole in 2000, according to credit rating group Experian.

Sales of small cars and those less than 3 years old were generally struck as the Government"s scrappage incentive, that offering a �2,000 bonus on 400,000 new cars, meant most new models were roughly as poor as a little used cars.

High prices of immature cars dilutes direct How to distinction from scrappage intrigue Scrappage intrigue an A to V of where to expostulate a understanding Car prolongation decrease worsens among predicament Sony offers income for old televisions

The scrappage intrigue additionally limited the series of old cars for sale, thereby inflating prices, as used vehicles were scrapped rather than sole on.

The programme"s stroke came on tip of recessionary factors such as car owners keeping hold of their existent vehicles for longer, thus obscure sales and supply further.

"The retrogression and the scrappage intrigue have had a big stroke on the used car market," Kirk Fletcher, handling executive for Experian Business Information and Automotive, said.

The scrappage intrigue is due to close at the finish of Mar and Lookers, the car dealership group, pronounced it approaching used-car pricing and sales to surge forward in 2010 as the debility of argent opposite the euro pushes new car prices higher.

"The scrappage intrigue is entrance to an end, but worth for income will sojourn at the forefront of consumer"s minds, that equates to that they could relax their criteria and find out older, reduce labelled vehicles," Mr Fletcher added.