| Incentives and internet combine to boost new car | | | | up of £1,000 from government with the |
| sales | | | | remainder being met by the manufacturer. |
| The motor industry may have been one of the | | | | In total 38 manufacturers have signed up for the |
| biggest casualties of the current economic crisis, | | | | scheme, including BMW, Mercedes Benz, Fiat, |
| but recent figures suggest that there may now | | | | Volkswagen, Peugeot and Ford. |
| be light at the end of the tunnel. | | | | Meanwhile the internet is also playing its part in |
| New government initiatives to help protect the | | | | helping to drive sales of new cars by helping to |
| environment and stimulate new car sales, | | | | match potential buyers with the best deals. |
| combined with the increasing popularity of car | | | | The lean times experienced in the industry have |
| comparison websites, are playing their part in | | | | accelerated the willingness of both manufacturers |
| helping the industry emerge from the recession. | | | | and new car dealers to embrace the internet as a |
| The Society of Motor Manufacturers and Traders | | | | way of making life easier for anyone thinking of |
| (SMMT) believes recently introduced vehicle | | | | buying a new car. |
| scrappage scheme is beginning to have a | | | | It is estimated that as many as five million |
| significant impact on sales of new cars. | | | | potential car buyers in Britain now browse the |
| According to the latest figures from the SMMT | | | | internet in an effort to find the perfect vehicle for |
| 29,796 vehicles have been registered under the | | | | their purposes. |
| scrappage scheme since it started on May 18. | | | | Historically dealers have viewed the internet with |
| In June, almost 10% of the total 176,264 new car | | | | suspicion but now they are finding that web-based |
| registrations were as a result of the scrappage | | | | searches and information exchange websites can |
| incentive scheme, giving a much-needed boost to | | | | help both customers and companies to meet their |
| the UK motor industry. | | | | aims. |
| What’s more, figures for July show that the | | | | One leading website in this field, Mammoth Cars, |
| number of new cars sold actually rose for the | | | | has developed relationships with franchised dealers |
| first time since April 2008, up 2.4% on the | | | | across the country in order to offer new car |
| previous month | | | | buyers the best prices without having to resort |
| SMMT chief executive, Paul Everitt said the | | | | to third party brokers or time consuming |
| scrappage incentive scheme is working well and | | | | journeys to find their ideal vehicle. |
| has encouraged a lot more people to consider | | | | Jon Kirk, Marketing Director for said "It's a great |
| buying a new car and in coming months, there will | | | | honour to receive this award and we are very |
| be an increase in the rate of deliveries. | | | | grateful to the Institute of Transport |
| This will confirm further progress on the | | | | Management and its readers for recognising what |
| industry’s long road to recovery, he added. | | | | we have achieved. We're looking to actively grow |
| Everitt’s optimism is backed up by | | | | our panel of dealers across the UK as quickly as |
| government figures which show that more than | | | | possible so we hope this award will help increase |
| 35,000 orders for new cars were placed in the | | | | awareness of how dealers and manufacturers can |
| first month after the announcement of the | | | | take advantage of the massive opportunity the |
| £2000 scrappage subsidy. This equates to one | | | | internet offers but without taking too much risk. |
| scrappage scheme order out of every five new | | | | Our dealers only pay when people are interested |
| car orders in this period. | | | | in their deals so they can work with us in a very |
| Prime Minister, Gordon Brown, and Business | | | | cost effective way." |
| Secretary Lord Mandelson have both welcomed | | | | Customers simply access the website to search |
| the figures. | | | | for their desired vehicle, locally or nationally. |
| The PM said he was delighted that so many | | | | What’s more, vehicles can be factory |
| people had taken up the Government's offer of | | | | ordered to meet specific requirements and |
| help to buy a new car when they scrap their old | | | | because they are being put in touch with a dealer |
| one. | | | | they can take advantage of other incentives such |
| This scheme not only helps hard-pressed | | | | as the vehicle scrappage scheme. |
| consumers, it also helps protect British jobs by | | | | For dealers, the advantage lies in the inflow of |
| stimulating demand for new cars, he explained. | | | | sales leads and customer data needed to follow |
| Lord Mandelson added that he scrappage scheme | | | | through and close a deal. |
| has got off to a flying start, giving car sales a | | | | Its efforts have earned it the title of Independent |
| major boost and the offer of a great deal for | | | | Online Car Sales Portal 2009, an award presented |
| consumers. | | | | by the Institute of Transport Management (ITM). |
| The Government has set aside £300m for the | | | | ITM Awards Liaison Officer Mr. Philip Leung, said |
| scrappage scheme, matched with funding from | | | | that Mammoth is committed to providing a |
| manufacturers. | | | | complete service of convenience to buyers and |
| It is intended to provide immediate support on a | | | | dealers, taking away much of the hassle and cost |
| short-term basis to boost the car industry and its | | | | involved for the customer in traditional methods |
| supply chain in the wake of falling sales. It will also | | | | of purchase. |
| get older vehicles off the road and encourage | | | | He added that it is also providing dealers with |
| consumers to invest in new, safer, and potentially | | | | strong leads to boost sales, which is particularly |
| more environmentally friendly models. | | | | important as the industry struggles to get back |
| For new car buyers, the £2,000 grant is made | | | | on its feet after the past year of hardship. |