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Sixty and overs benefitting from scrappage scheme

Sixty and overs benefitting from scrappage scheme

Category: Money

Updated: 16/06/2009
First Published: 16/06/2009

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 It is now over 6 months old so the content may be out of date.

New research has revealed that the UK's 60 and overs are amongst those taking the greatest advantage of the scrappage scheme.

Data from Key Retirement Solutions shows that many of this group are releasing equity from their homes to buy a new vehicle.

Just over eight per cent of all new vehicles purchased under the scheme have been made by the 60 and over age group, according to thee Retail Motor Industry Federation and Automotive Management.

"The further increased interest that we are seeing from those aged 60 and over since the scheme was launched should no doubt result in more uptake from this age group," commented Dean Mirfin, group director at Key.

"The over 60s will clearly be playing an important part in helping fuel the motor industry during 2009 and beyond."

Figures show that ten per cent of customers who released equity between January and May this year have used the funds to buy a car.

That figure increased to 16 per cent in May, when the scheme officially started. The average amount released to fund the new purchases is £8,710 and approximately 25,000 equity release plans are predicted to be taken out this year, meaning almost £22 million will be released to purchase a new car.

Government figures show that more than 60,000 orders for cars have been placed under the scrappage scheme since the initiative was announced.

Car buyers are given a £2,000 discount on a new model if they scrap their present car that is more than ten years old. Half the funds are provided by the Government, while the other £1,000 is paid by the car manufacturer.

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