UK Vehicle ‘Scrappage’ Incentive Supported by Consumers
Moreover, 40% of the respondents with qualified vehicles would most likely be interested to purchase a new vehicle within the next six months through this type of incentive.
When it comes to their brand preferences, the respondents would consider purchasing from a wide range, 13% of them interested in a vehicle from a premium manufacturer.
“This is an essential boost to the automotive industry at a critical time,” said Susan Barnes, European automotive director at J.D. Power and Associates. “It is good to see such positive intentions amongst all respondents, whether they qualify for the incentive or not. Ultimately, the level of success achieved by the initiative will also depend upon the activity that manufacturers are able to combine with the government-backed incentive to make buying a new car really attractive at a time when levels of consumer confidence are so low.”
The report also brought to the public attention the possible £5,000 incentive for buyers who purchase a new electric or plug-in hybrid vehicle starting in 2011. 50% showed their interest in this program.
When asked to indicate a preference between the two incentive plans, 29% of owners whose vehicles qualified for the £2,000 scrappage incentive say they would be motivated by this initiative, compared with only 15% who preferred to wait for the £5,000 payment.
“J.D. Power and Associates automotive studies indicate high levels of customer satisfaction with hybrid models that are currently available,” said Barnes. “However, with 2011 only two years away, it is clear that manufacturers still have a considerable task ahead in de-mystifying the concept of green cars and in convincing consumers that they present a real alternative to their current vehicles.”
The survey was fielded between April 20 and April 21, 2009, and is based on the responses of 1,211 online panelists.