As the government scrappage scheme has now ended car dealers and car manufacturers have quickly filled this gap with a similar offer. They have called it the car swappage scheme whereby you can trade in your vehicle for a brand new car. Most car dealers already offer this scheme which is known as part exchange but it usually applies to if you were going to buy a new or used vehicle. The swappage scheme simply refers to if you are buying a new vehicle. The scheme that car dealers and manufacturers have created also has extra criteria that you must adhere to compared to a normal part exchange. For example to qualify for any Toyota swappage the car must have been registered in the UK between 1st March 2000 and 28th February 2003. You dont have to have owned the car from knew but unlike the scrappage scheme you just need to have owned it for the last 90 days or more, and you must also have a UK address. The vehicle will need a current MOT certificate, be road-taxed and insured. Other car manufacturers and car dealers use the swappage scheme to fill the scrappage scheme gap. However not all the car manufacturers have opted to implement the swappage scheme such as Ford. Certain car dealers that have been left out of the swappage scheme have probably suffered as a result in terms of sales. But the problem is many experts are suggesting that the swappage scheme is only putting off the inevitable. After the scheme ends most car dealers and manufacturers are going to find it hard to sell the number of cars they have been able to sell since the scrappage scheme was introduced back in 2008. It wasnt just the UK that introduced the car scrappage scheme. Other countries across the world also implemented similar measures to try and increase if not simply to maintain the number of cars being sold. It was easier for car dealers to sell a number of new and used cars before the recession occurred. This is mainly because before the recession there was an array of institutions that were bending over backwards to lend money a ridiculously low interest. This meant that it was fairly cheap to purchase a car and many people took advantage of being able to drive a modern vehicle. At the time this was great for the car manufacturers and dealers because it meant they could enjoy large profits. Now many car dealers and the car manufacturing world are suffering as a consequence of cheap credit which a substantial amount of individuals and on a larger extent financial institutions have not been able to repay this. This has meant credit has reduced compared to it was at its peak and consumers have become more weary to spend large amount of money. This is mainly because there is uncertainty in the market particularly when it comes to purchasing larger and more luxurious products such as vehicles. Therefore although the scrappage and swappage scheme have undoubtedly helped the car industry, car dealers are likely to struggle in terms of sales volume in the next 12 months.

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