Britons delay new car purchases after rumours European scrappage scheme could launch in UK

Britons delay new car purchases after rumours European scrappage scheme could launch in UK

New car buyers have already been offered stimulus packages in France and Germany to help boost their nations economies. The French government has announced €8billion of funding, inclusing boosting subsidies for electric vehicle buyers from €6,000 to €7,000. 

Germany’s VAT rates for passenger cars have been cut from 19 percent to 16 percent in an attempt to boost sales. 

Meanwhile an extra subsidy has been introduced for electric vehicles priced below €40,000 

WhatCar? Research found nearly a third (29 percent) of prospective UK buyers have confirmed they have delayed their purchases in the hope extra benefits are introduced. 

WhatCar? Analysis has also revealed 19 percent have changed the brand of car they were considering buying before restrictions were put into place. 

READ MORE: Used car demand soars as market looks to bounce back

However, proposals have been leaked for a  petrol and diesel car scrappage scheme which would see motorists paid to purchase a new electric vehicle.  

This would see owners may receive up to £6,000 for ditching their old petrol and diesel car and opting for an electric vehicle, according to the Sunday Telegraph. 

The scheme would be a desperate attempt to boost car sales across the UK after the coronavirus pandemic saw total sales dramatically fall. 

WhatCar? Editor Steve Huntingford said government backed initiatives would be welcomed to boost the industry. 

He revealed that although demand increased after dealerships were reopened, the initial surge had subsided as motorists continue to wait for the government’s next move. 

He said: “Governments across Europe are introducing initiatives and incentives to protect and stimulate the automotive industry in the wake of the Covid-19 pandemic. 

“Despite growing speculation around a green scrappage scheme in the UK over recent weeks, nothing has yet been confirmed.

“While our research and web traffic data suggests demand is increasing in June, the industry will need support once the initial post-lockdown surge has subsided. 

Published at Wed, 10 Jun 2020 06:21:00 +0000