Scrappage - Our opinion

When the scrappage scheme was launched after a period of sustained lobbying from the RMIF and SMMT, I thought that it was too weak and lacked the teeth to prompt private buyers to return to the new car market.




Now the alloted funds are dwindling it would appear that it has had the desired affect and created new retail sales more quickly than anticipated. The question is sure to be will the scheme continue?




There are figures quoted in many trade publications that the scheme has actually created a surplus of tax relative to the subsidy, so it would seem that it should be an easy decision for Government. I would anticipate any announcement to be made as late as possible in order for the public relations machine to be more effective.




The manufacturers of smaller cars have naturally seen greater benefit as it is easy for someone to see value in what is in essence a £2000 reduction on a list price, the advert for the Fiat Punto at around £5k certainly raised my eyebrows.




It seems a shame that lots of serviceable cars which fill a great need at the lower end of the market have been broken for parts but in order to avoid system manipulation and for the Goverment to keep their green angle this could not happen.




The final year registration figures from the SMMT will no doubt be dramatically less than last
year but will be better than without scrappage.




Jamie

Our cars reach far and wide!!

There has often been a worldwide market for many unusual, exotic and classic cars but the nature of our recently depressed used car market and weak pound have meant a lot of cheaper cars have been disappearing from this country.

Yesterday we sold a ten year old Jaguar S Type 4.0V8 that had done 126k, had one previous owner and a new MOT on eBay for £1710 to a chap from Hungary who intended to break it for parts!!

It got us thinking about all the cars in the last two years that we have sold for export.

We have sold a number of immigrant workers cars like a £200 Peugeot 406 which they came all the way from Middlesbrough to collect!

There was the 25 year old immaculate left hand drive Mercedes 300 which made it all the way to a new owner in Italy.

We sold a high mileage BMW 528i SE to some interesting characters from Tblisi in Georgia who intended to convert it to left hand drive and sell it on. Sadly for them they engaged first gear instead of reverse on their departure and the corner of the car was a bit flatter than before their arrival.

A number of cars have gone to Africa including a Toyota Rav4 to Tanzania, a VW Passat Estate to Ghana and a high spec Mercedes E Class to Algeria.

The strength of the Euro has also helped European buyers with right hand drive like Ireland and Cyprus. These buyers seem particularly fond of older Mercedes diesels.

Ultimately we do not mind if the car goes to Exeter or Eritrea as long as the new owner is happy!

Jamie

Its our birthday!!

The Internet Car Lot turns two years old on the 1st of September and we have certainly learnt a lot in that time!

We started the business as the economic climate was really starting to degenerate and up until November last year we were operating in a market where the supply of cars was much higher than the retail demand. This meant that we could only stock a car for a very limited time before all the profit was lost through natural depreciation.

Ever since November the complete reverse has occured where the supply of good cars for retail has been limited and demand has outstripped that dwindling supply. This is why the value of used cars have increased by significant amounts compared to this time last year. Whilst this market is better for the trade and retail customers alike, it means that finding cars at a level which is still attractive for the customer yet retaining a profit for us has been very challenging.

Manufacturers have not been pre-registering cars in any number and the fleet operators have been extending leases as opposed to writing new business so it is no surprise that the new car market volume is so much less than the previous years. This then naturally affects us as a used car business as we have a lot less cars to coming through the system.

We are very excited about the propects for the next financial year as the economy looks more stable (although still not as bouyant as some political figures would suggest) and the car market looks to have weathered a very severe storm!

Jamie