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 Â£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 companyâ€™s boss, Mark Cornwall, said: â€œ[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.
â€œMost new cars purchased under the scheme are manufactured abroad, safeguarding foreign jobs whilst increasing the UKâ€™s level of debt â€“ itâ€™s complete madness.
â€œThe 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.
â€œWe donâ€™t all get our money as easy as our politicians or have the luxury of expense accounts we can dibble into.â€
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.