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


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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…