Scrappage will put garages out of business, warns parts supplier

More than a quarter of garage owners believe they could go out of business within the next 2 years because of the car scrappage scheme.

28% of 100 garages surveyed by Car Parts Direct said they are unlikely to survive beyond 2011. 56% said they would survive the scheme, while 16% were unsure.

The parts supplier revealed its findings after the Government announced that it will extend its publicly funded scrappage incentive scheme with an additional £100m.

Car Parts Direct estimates that, on top of the 227,750 cars that have already been scrapped under the scheme, 175,000 more could be destroyed over the next 6 months.

And it said that, as a result of the scheme, 22,000 of the older parts in its portfolio are now surplus to requirements.

The company’s boss, Mark Cornwall, said: “[This] hair brain scheme has resulted in some perfectly good vehicles been destroyed. We should be tightening our belts rather than throwing money away like this.

“Most new cars purchased under the scheme are manufactured abroad, safeguarding foreign jobs whilst increasing the UK’s level of debt – it’s complete madness.

“The cost of buying a new car compared to running an older vehicle does not stack up. Anyone with a 10 year-old vehicle who looks after it will enjoy several years of trouble-free motoring at a fraction of the cost of buying new.

“We don’t all get our money as easy as our politicians or have the luxury of expense accounts we can dibble into.”

Do you believe your business is threatened by the scrappage scheme? Have you noticed a drop in sales as a result of it?

Get in touch and have your say by voting in our online poll and using the comment facility below.

This post was written by:

- who has written 256 posts on CAT Magazine.

Emma has been CAT's editor since January 2008. There isn't much she doesn't know about the aftermarket - and her favourite topic is definitely BER!

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