Scrappage scheme 'could harm second-hand sector'
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The government-backed scrappage scheme is likely to harm the trade of second-hand vehicles, it has been claimed.
Company car and commercial vehicle fleet expert Stewart Whyte, managing director of the Fleet Audits Consultancy, has claimed that the new initiative, which aims to encourage drivers to opt for new vehicles over old, could create a "polarisation" between the sectors.
He explained that proposals to give £1,000 to drivers who opt to scrap their old car in favour of purchasing brand new are not going to be as successful as other alternatives.
"If the scheme permitted some younger, clean, low-CO2 used cars to qualify, positive effects would ripple through the whole market," he suggested.
But, since it does not, then the used vehicle sector is likely to suffer as a result.
This comes after the Freight Transport Association recently criticised chancellor Alistair Darling over his Budget decision to raise fuel duty.
It claimed that the impending two pence-per-litre rise will signal "the death knell" for parts of the logistics sector.
