3:10 am, March 25, 2010
GLASS’S Guide believes car makers are set to slash prices as the scrappage scheme comes to an end.
Following our story at the weekened that Ford is due to announce price cuts in the shape of new base models, the valuations experts have said they believe many more will follow suit.
Glass’s says this is in response to falling registrations and in an effort to recapture fleet sales.
Adrian Rushmore, managing editor at Glass’s, said: ‘List prices rose by an average six per cent last year, with some model lines increasing by more than twice this amount, and this has made many vehicles less attractive for those business users that will have to pay higher rates of Benefit in Kind tax.
‘Manufacturers are planning to address this by either dropping prices on selected ranges, or by launching new entry-level models that will establish a new, lower price point for the range.’
Rushmore says car makers are anticipating a marked shift in demand away from retail buyers and towards fleets and business users in 2010 – partly as a consequence of the scrappage scheme ending, but also because many fleets will be replacing their ageing vehicles after deferring purchases last year.
by JAMES BAGGOTT
