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Scrappage scheme 'good for consumers'

Scrappage scheme 'good for consumers'

Category: Car insurance

Updated: 23/04/2009
First Published: 23/04/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Car insurance customers are set to benefit from the introduction of a new scrappage scheme, it has been noted.

AA Personal Loans welcomed the plan to provide £2,000 to anyone trading in an old vehicle, announced by the government yesterday.

Chancellor Alistair Darling revealed in the Budget that the money would be paid to those exchanging a car more than ten years old, in order to encourage consumers to buy newer models.

Director of AA Loans Mark Huggins noted that other European countries have experienced success with similar initiatives and cited a poll by the organisation showing that 28 per cent of motorists would take advantage of the scheme.

"The pot of £300 million could benefit 300,000 drivers and, coupled with a typical car loan of £8,000 could bring a brand new car within reach of many families for the first time," he remarked.

Meanwhile, the Retail Motor Industry Federation has also praised the move, noting that the expected increase in sales could help protect jobs.

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 Any products featured may be withdrawn by their provider or changed at any time.

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