Scrappage scheme hailed 'most successful'
A new study has described the recent scrappage scheme as 'one of the most successful ever collaborations between car manufacturers and the government'.
Glass's report said the scheme not only stimulated new-car sales at the recession's lowest point, but is also likely to have done so without 'pulling forward' future sales of new cars.
Some experts were worried the scheme would encourage those who were planning to by a car later in 2010 to buy earlier, but this was not the case.
The findings of the research, which analysed data from car manufacturers once the scheme had closed, revealed that less than 10 per cent of the customers who bought new cars under the scheme, planned to buy a new car in the future.
The £2,000 incentive was what encouraged traditional used car buyers to invest in a brand new car. The report titled 'The UK Car Market- managing a sustainable recovery,' investigated the instability of the industry over the past two years, putting it in to historical perspective and using the information to try and predict short and medium term prospects for the industry.
Andy Carroll, the managing director at Glass's is cited in the Daily Telegraph as saying: "The scrappage scheme was a great success as a stimulus for the industry during difficult economic times, generating much- needed showroom traffic and car sales.
"Close to 400,000 cars were registered under the scheme, but only one in 10 of these could be said to have been pulled forward - in contrast with experiences in other European markets."
Glass's estimates that the total number of people that would have bought a new car without the scheme would be 1.78 million units, registrations actually hit 1.99 million units.
Previous news stories
Myla Wilson, Rugby, MERCEDES-BENZ