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Scrappage scheme fails to lift CV sales

10 July 2009

LCV sales have shown little response to the introduction of the government's vehicle scrappage scheme, as just 325 vans have been sold since the programme started. Car sales topped 30,000 in the same period.

This result has been blamed on the generally shorter lifecycle of vans, due to more intensive usage - the scrappage scheme applies to vehicles 10 years and older.

Robin Dickeson, SMMT commercial vehicle manager, says: "In respect to CVs, the scheme is imperfect and would be more relevant if it was set at seven years. The issue here is what constitutes an LCV? Things become more complicated."

Dickeson adds that the overall success of the scrappage scheme has had the desired effect by helping to restore overall buying confidence.

Brian Bennett, Ford spokesman, points out that net of VAT, the total benefit is only £825 from the government, "which, in many cases, is the same or less than a 10-year-old Transit, thereby providing little incentive to change".

Steve Bridge, Mercedes-Benz van sales and marketing director, says: "We were disappointed with the 10-year rule; it's a big step for an operator in terms of value. For example, a new car can start at £8,000, while a van can cost up to  £20,000."

Bridge adds that there are a restricted number of 10-year-old vans on the road, limiting those who can opt for the scheme.

Ford achieved the biggest result with 200 CV sales - compared with 12,000 cars during the same period - followed by Mercedes-Benz (147), Volkswagen (83) and Peugeot (80), while Renault (58), Vauxhall (30) and Iveco (7) were less successful.


Julian Milnes
Email at julian.milnes@rbi.co.uk
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