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Scrapping scheme would help loan holders buy cars

Scrapping scheme would help loan holders buy cars

Category: Loans

Updated: 23/03/2009
First Published: 20/03/2009

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 It is now over 6 months old so the content may be out of date.

Consumers are being put off taking out unsecured loans to buy a car due to uncertainty over potential incentive schemes, it has been argued.

AA Personal Loans has called for the government to make a decision over a scrapping scheme, which would see consumers trade in older, more polluting vehicles in exchange for money off new ones.

The body also urged the Bank of England and the Treasury to take action in order to ensure that finance is available to those who would take advantage.

Director of AA Personal Loans Mark Huggins said the move would boost sales in the motor industry, as well as help consumers.

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

Last month, the AA revealed that those taking out unsecured loans for vehicle purchase are borrowing a similar amount to last year, but getting better value for money as prices have dropped.

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