NFDA backs calls for scrappage extension

The National Franchised Dealers Association (NFDA) has become the latest body to back calls for an extension of the government’s vehicle scrappage scheme.

A meeting with the government has been requested by the body in order to discuss the potential extension, which it describes as “vital” to the industry.

Paul Williams, NFDA chairman, hailed the positive effect of the initiative since its introduction in May.

He said: “To say the scheme has been successful … would be a mass understatement.”

However, Mr Williams cautioned that ending the scheme too early could end up dealing damage to a motor retail industry which remains in a fragile state due to the recession.

The chairman added that the incremental nature of sales made via the scheme means that it has become self-financing though VAT earnings, which could translate into a profit should taxation increase.

This comes after automotive intelligence company Glass’s earlier this month called for an extension of the scrappage scheme, a proposal which it described as “a win-win for all parties”.

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