Scrappage scheme 'will make little difference’ - Car insurance - News - Moneyfacts


Scrappage scheme 'will make little difference’

Scrappage scheme 'will make little difference’

Category: Car insurance

Updated: 18/05/2009
First Published: 18/05/2009

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 It is now over 6 months old so the content may be out of date.

Critics of the Government's car scrappage scheme say it is not generous enough and will make little difference.

From today, motorists with vehicles that are ten years old or more are eligible for a £2,000 discount on a new model when they scrap their old car.

The Government will offer consumers £1,000 when an old car is scrapped while vehicle manufacturers will offer a discount of the same amount on new models.

The £300 million scheme should provide a boost to the car industry and kick-start sales, Lord Mandelson said.

Hopes that the programme will be successful have been boosted by the relative success a similar scheme had in Germany, where new car sales have increased by an impressive 40 per cent since March.

Furthermore, since the scheme was unveiled in April's Budget by Alistair Darling, Lord Mandelson says there have been a flood of enquiries from customers.

The AA are also supporting the scheme and believe it could mean a £2 billion boost for the UK car industry

However, director of engineering at loss valuation and settlement specialists TLSS, David Patten, says while any action to boost motor sales should be supported, the car scrappage scheme will make little difference in isolation.

He also alluded to a recent survey which found 81 per cent of people questioned said they would not sign up to the scheme.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Black Friday sees increased motor incidents

Today can be a day of big savings, but it could also end in tears, as research has revealed that motor incidents were up by 8.5% on Black Friday last year. It’s therefore extra important to keep an eye on traffic today, not just on bargains.

Whiplash crackdown could cut car insurance costs

Whiplash claims have rocketed in recent years, and they’re driving up the cost of car insurance. So it’ll come as welcome news that the Ministry of Justice is stepping in, and will hopefully reverse the trend.

Be extra cautious on the roads today

Today may be Halloween, but it’s also the first Monday after the clocks go back. According to Admiral, this traditionally sees a higher number of incidents on the road, and the insurer is urging motorists to exercise extra caution as a result.