RMIF NFDA director Sue Robinson said: ‘Lord Mandelson’s support measures for the car industry, announced on 27 January, were too little, too late to help revive new car sales as we enter 2009.
‘Despite reports to the contrary, consumer credit is still available to those who want to replace their vehicle. There has been a vast improvement in used car sales in the last month, as consumers feeling the pinch look for great value for money on used vehicles.’
However, she points out that, contrary to perceptions, new cars can offer value equal to that of used vehicles, once warranties are accounted for. As this is a key buying criteria, it is a message that’s vital to get over.
‘There is still desire for a new car, and a budding confidence that must be developed.’
One aid to boosting new car sales could be a new car scrappage scheme. The RMIF has been pressing for such a scheme for the past few months.
It will soon be presenting to the Government how a self-financing scheme could be a success, as it is in other European countries.
‘This RMIF-led initiative is clearly gathering momentum,’ said Robinson.