Car insurance Updated:
As many as 1.5 million consumers could be tempted to trade in their old cars for new models because of the new scrappage scheme that was announced in last week's Budget. The Chancellor announced that car owners with vehicles a decade old or more will be given a £2,000 cash incentive to buy new models. Under the terms of the scheme, which has been devised to give the ailing UK automotive industry a much needed shot in the arm, consumers will have to prove they have owned the vehicle for 12 months or more. There are currently 7.1 million privately owned vehicles that will be eligible for the programme, of which up to 1.5 million may be traded in, according to Experian. "This scheme should help stimulate demand across the car market, as well as assist the environment by removing older, potentially more polluting vehicles from UK roads," said Kirk Fletcher at Experian. "However, we may see a very short term lull in both new and used car sales as some people possibly delay purchases in order to get clarification on whether they qualify for the scheme or not. "
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.