Tell MPs to call for scrappage scheme extension says NFDA

Car dealers must write to their local MPs to call for an extension of the vehicle scrappage scheme, so the RMI National Franchised Dealers Association (NFDA) is urging its car dealer members to write to their local MP as part of its campaign for a continuation of the initiative.

MPs can put further pressure on Government to consider a continuation of the scheme, and demonstrate the extent of support within the industry for scrappage.

The NFDA is lining up meetings with Government to discuss the possibility of an extension.

NFDA Chairman Paul Williams commented: ‘With encouragement from dealers in their constituencies, MPs will be able to put pressure on Government to give serious consideration to extending the scrappage scheme.’

Latest Government figures show that 195,009 cars and light vans have been ordered through the scrappage scheme since it went live on 18 May 2009. With sales continuing to grow, the Government’s £300m funding for the scheme is expected to be exhausted before the end of the year.

Williams adds: ‘The scheme has been highly successful, but with the retail economic climate still fragile, demand still growing, and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital. Dealer support could be the key to enabling Government to see the advantages of such a continuation.’

‘To say the scheme has been successful since its introduction would be a mass understatement’ says Paul Williams, NFDA Chairman, ‘but with the retail economic climate still fragile and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital. Further, our research tells us that as these sales are purely incremental, the VAT earned on them has made it a self funded scheme. Indeed, if VAT were to increase Government could be in receipt of a surplus.’