Middle-aged car buyers make most of scrappage scheme

Most car dealers have reported an increase in new car enquiries as a result of the vehicle scrappage scheme, with middle-aged cash-buyers making up the majority of scrappage customers, according to a survey performed by the Retail Motor Industry Federation (RMIF), the trade association for 8,000 motor retailers that sell service and repair new and used cars, and Automotive Management, the motor trade industry newspaper.

The survey asks car dealers to gauge what impact the scheme has had since it was launched last month, as well as who is buying, what they are buying, and how they are paying for it.

On the impact of the scheme on sales, the survey found that:

92.8 per cent of dealers reported an increase in enquires on new cars following the announcement of the scheme.

48.5 per cent of the vehicles being bought under the scheme are priced between £6,000 and £8,000.
22.1 per cent are priced between £8,000 and £10,000.

66.9 per cent of the vehicles being bought under the scheme have 1.0 to 1.3 litre engines.
19.1 per cent of vehicles being bought have 1.3 to 1.6 litre engines.

63.7 per cent of those buying under the scheme are aged 45 to 60.
27.1 per cent are aged 31 – 45.

54.7 per cent of dealers said that less than 25 per cent of purchases are being made using consumer finance.

Commenting on the survey, RMIF Director Sue Robinson said: ‘Car sales should see a significant increase in the coming months as a result of the vehicle scrappage scheme. This will go a long way towards helping to revive consumer confidence, and the UK car market, making it a double win for buyers and business alike.’

Jeremy Bennett, Automotive Management editor, said: ‘Car buyers now have the knowledge they need to make a fully informed purchasing decision. It’s clear the scrappage scheme has released pent up demand which had built up as result of uncertainty as we waited for a decision on a scrappage scheme. It’s a great time to visit your local dealer to scrap a banger and bag a bargain.’