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Report suggests the government is planning to offer buyers incentives for buying new cars.

Car showrooms are back open in England but 10 weeks of closure have really taken their toll with car sales down by almost 90% during the month of May. Car manufacturers are calling for a scrappage scheme similar to the one in 2009. Not surprisingly, this has met with strong opposition from the Independent Automotive Aftermarket Federation (IAAF) whose members are already struggling due to the COVID crisis.

The 2009 scheme effectively took 400,000 serviceable vehicles out of the aftermarket and less than 10% of cars that were sold under the scheme came from UK factories. The IAAF fear that a new scrappage scheme would put tens of thousands of jobs at risk and wouldn’t really help consumers as most of the cars eligible for the scheme are perfectly roadworthy.

Wendy Williamson, IAAF chief executive, said: “Motorists are currently under great pressure, and they should not be penalised for keeping hold of vehicles that are in good working condition and can continue to be serviced, repaired and maintained long into the future. Not only is this unfair to consumers, but it is putting the aftermarket at great risk, as it will result in a direct decrease in the number of vehicles entering independent garages.”

The new government scrappage scheme will reportedly offer new car buyers up to £6000 to switch from older petrol and diesel cars to new electric or hybrid vehicles. However, with no official word yet from the government on when or even if it will actually go ahead, we await an announcement with interest.