Car scrappage scheme a boost to showrooms says RMIF

‘The introduction of a vehicle scrappage scheme as announced in the Budget will boost the new car market, encourage consumers to get back into car showrooms, and reduce the likelihood of employee downsizing in this sector,’ according to Paul Williams, Chairman of the Retail Motor Industry Federation (RMIF), representing 8,000 retail motor sector businesses that sell, service, and repair new and used cars.

Williams was commenting today (Wednesday 22 April 2009) on the announcement in the Budget of a vehicle scrappage scheme to help boost new car sales.

Williams continues: ‘A number of other EU member states have boosted vehicle sales through scrappage schemes. A similar scheme has seen great success in Germany, where new car sales saw a 40 per cent monthly rise and attracted over half a million buyers.
Williams adds: ‘By opting for a vehicle scrappage scheme in the Budget, the Government has taken the opportunity to boost the new car market, while simultaneously helping consumers buy a new car. The nation’s car dealer network, which will be in the front line for the duration of the scheme, has the expertise that will enable the scheme to be a success, and will assist Government in the implementation of the scheme.’

The RMIF put this scheme on the table in November 2008, when it called for a vehicle scrappage scheme to be introduced, and met major figures across the political spectrum to discuss the issue, including Business Secretary Lord Mandelson, Exchequer Secretary Angela Eagle MP, and Shadow Business Secretary Ken Clarke MP.