Friday, 01 September 2017

Trade-in schemes launched to attract buyers

BBC reports that automakers have stepped up to offer scrappage schemes in order to attract new business. Renault-Nissan and Kia have now joined VW, Toyotam BMW, Ford, Hyundai, Mercedes-Benz and Vauxhall in offering UK customers that chance to swap their old car for a new, more eco-friendly model.

In order to qualify, the old car must be registered before 2010 but can be any brand. The car makers are offering differing discounts to encourage customers to buy less polluting cars after the recent revelations over emissions tests.

Tim Urquhart, principal analyst at IHS Automotive, said the move was both about restoring VW's credibility after 'dieselgate' and boosting sales.

'We've seen a bit of a drop in the UK car market this year after years of really accelerated growth. I think the manufacturers are looking to get people into their showrooms,' he told the BBC's Today programme.

'At the same time VW are showing they are being socially responsible. They are getting some of these older diesel vehicles off the roads.'

Jim Holder, editorial director of Haymarket Automotive, told the BBC that VW's scrappage incentives would vary from country to country, due to factors such as transport costs and vehicles being cheaper in its home market.

However, he said VW would probably have pitched their discounts in order to compete with rival schemes in the UK market.

'Owners of older vehicles typically don't have the money to spend on a new vehicle, even with these discounts - in normal circumstances it would be far more likely that they would trade up to another, less old, used car.'