Will the Scrappage System Actually Hurt the Market?

People nationwide have seen the scrappage system as something that has rescued the whole industry. The whole country has noticed that new car sales are up a huge amount and this is because people know they are getting a bargain. For many people they have never been able to afford a brand new car because it cost so much, so they have kept their car for as long as they could. But the scrappage scheme has deducted £2000 off of new cars if you trade in your decade old vehicle.

But as a huge amount of people may know the scrappage scheme is only a temporary one and within the next twelve months it could all be over. There are a couple of reasons that this could actually happen and the first being that people are snapping up the new cars now so why would they need to buy another in a few years.

The second reason we have to think about is that will the economy actually be better by 2010,was it the right call to stop the scrappage scheme in 2010 or should we keep it on longer? Although the economy in my view will take years to recover I also think that the car sector will take even longer.

So car makers need to look at an alternative way to temp the public into once again buying a new car, because without any discounts or incentives the market will undoubtedly be feeling the pinch for many more years to come.

Do you want to Buy a new BMW or Buy a Toyota