Car scrapping would help unsecured loans - Loans - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Car scrapping would help unsecured loans

Car scrapping would help unsecured loans

Category: Loans

Updated: 13/02/2009
First Published: 13/02/2009

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 It is now over 6 months old so the content may be out of date.

An initiative to give consumers a greater chance of buying a new car has been proposed by the AA.

The body has suggested to the government that a scrappage scheme be introduced, rewarding owners of old, polluting vehicles for getting rid of them.

Director of AA Personal Loans Mark Huggins explained that providing a £2,000 discount on a new or nearly-new car for those who scrap their old one, would make obtaining unsecured loans for vehicle purchase easier.

"The proposal ticks all the right boxes," he said, adding: "I believe it would be a popular move and would allow many families to buy their first brand new car."

In addition, Mr Huggins noted that the environment would benefit as a result of reduced emissions.

Meanwhile, Sainsbury's has revealed that the value of unsecured loans taken out for the purpose of making home improvements increased by 22 per cent last year.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!