Car Dealer Lookers Calls For Scrappage Scheme Extension

Following on from Pendragon’s call earlier this week for the UK’s Car Scrappage Scheme to be extended, car dealer Lookers has also said it would like to see the scheme continue into next year.

The plea comes after the dealer announced half year profits of £8.6m, down from £13m last year. “The car scrappage scheme has helped, and we would like it to continue into next year” said CEO Ken Sturgeon, adding “We have around 3,500 orders from it so far, 55% of which has been delivered.

Revenue at the dealer for the 6 months to June 2009 came in at £870m, down from the £1bn reported for the same period last year. Lookers said the scheme had helped performance but that it remained cautious regarding the outlook for the new car market.

Sturgeon noted that whilst demand for new cars was down, “used cars, parts and after-sales are going really well.”

The Car Scrappage Scheme which launched in May of this year is due to end February 2010, or when the £300m put aside by the government for the scheme has been used up, whichever is the sooner. A 2.4% year on year rise in July of new UK car sales has been largely credited to the scheme.

However, over the half the funds have been used up already, suggesting the scheme will end later this year at the current run rate, several months short of the original expected end date.

August 19th, 2009 | Tags: , , , , ,

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