Northern Ireland Awaits Scrappage Scheme While the Demand For Used Cars Rises

Demand for used cars may exceed supply in Northern Ireland as due to financial crisis many  decide to play is safe and buy a second-hand vehicle instead of a new one. This puts sellers at an advantage, but the situation on the used car market will change when the scrappage scheme is introduced.

At the same time as the crisis in sales of new cars continues, the used cars market in Northern Ireland and the whole UK is flourishing. The demand in the first quarter of the year is much higher than in 2008 and as a consequence the prices of used cars are increasing. Despite the rise in costs, the interest in second-hand vehicles remains high.

There is a risk however, that if the market of new vehicles does not get better, the problems for used car retailers may occur, as the supply will end. If you are thinking of selling your vehicle, it may be the best time to do so, as the demand is high and you might be offered a satisfactory price. As the used cars begin to be in short supply, there are more voices heard in favour of a scrappage scheme. It turns out that not only car producers await it.

The discussion is now expected to be heated as the outcome of a scheme implemented in Germany has been announced. The German government has decided to offer a bonus of €2500 to every person buying a new car who trades in a car older than 9 years at the same time. This step has led to an increase in new car sales and at the same time has improved the situation on the used car market. The statistics prove that the growth is remarkable - it is stated that with and increase of 21% , this February has been the best for new car sales in this country in ten years!

The scrappage schemes have been introduced also in some other European countries (e.g. France) but the German model has been the most successful till now. The British car dealers and producers opt for a ¤2000 incentive for each new car buyer who would scrap their old one. The British Society of Motor Manufacturers and Traders estimates that in this way a demand for up to 250,000 cars could be created till the end of 2010.
All in all, the scrappage scheme is to be considered, however for now, the market of used cars is enjoying a lot of interest of potential buyers as many of them prefer to save and decide on second-hand vehicle instead of new one.

Article Tags: Northern Ireland, Scrappage Scheme, Used Cars, Same Time

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