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 It is now over 6 months old so the content may be out of date.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

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