The Government is to extend its car scrappage scheme to include a further 100,000 cars and vans.
The scheme, which started in May, gives consumers £2,000 off a new car if they trade in one at least 10 years old.
The initiative was due to end in February, or when the £300m the Government had allocated towards the scheme ran out, whichever happened first. Carmakers, including Toyota and Ford, and unions urged Chancellor Alistair Darling to extend the scheme to help save manufacturing jobs amid concerns that car sales would fall sharply without continued incentives to boost demand.
As a result of this Government intervention, dealer groups are feeling more confident and Barber Wadlow has witnessed an increase in the number of operators actively searching for dealership facilities in locations nationwide. In most cases, dealers are looking to take on new franchises in open points that have been created as a result of a business failure.
An extension of the scrappage scheme would help ensure that this improvement in trading conditions is sustainable, and will also help negate the impact that the VAT increase in 2010 is likely to have on the market.