The scrappage scheme seems to have caught the car buying public’s imagination. Hyundai appears to have been the most successful franchise so far, with more than 4,000 scrappage-related new vehicle deposits taken.

Reports from dealers indicate that many people who have shown an interest in the scheme are good quality prospects – fairly affluent, but they drive an older vehicle simply because they don’t see the car as a status symbol. It’s purely for getting from A to B. They will probably keep these cars for ten years or more as well, so they’re not necessarily going to be good repeat customers. But there’s an opportunity to get their servicing business, and hopefully some good referrals as well.

The margins on these cars are thin, and some dealers are paying their sales staff a percentage of the chassis profit, rather than a fixed commission, to encourage them to upsell – paint protection, service plans and particularly F&I.