The UK Government has announced a scrappage scheme in today’s government budget to boost new car sales during the recession.
The scheme will encourage motorists to scrap old cars and purchase a new car with lower exhaust emissions with a cash incentive. The car scrappage incentive will be introduced in hope that it will boost the flagging UK car market and help car dealers suffering in the current recession. Motorists taking advantage of the scheme could receive as much as £2,000 off a new car.
The incentive which is currently being implemented in France, Germany and Italy has already helped reduce the impact of the economic downturn in the motor industry in these countries.
The UK scheme - which will run until March 2010 - applies to cars over ten years old and must have been registered in the owner’s name for at least one year. Once proof has been obtained that the old car has been scrapped, a £2000 scrappage voucher can then be exchanged when purchasing a new car.
According to the Society of Motor Manufacturers and Traders (SMMT) more than 800,000 jobs are dependent on the UK automotive sector which is reaching a state of emergency. In a survey commissioned by the SMMT, 76% of consumers are in favour of the Government introducing a scrappage scheme similar to those currently running across Europe.
Steve Chelton, insurer development manager for Swinton car insurance, said: “The scrappage scheme is a great incentive to encourage people to trade in older cars. The motor industry is vital for the economy and the scheme could be a great way to reduce the impact of the economic downturn. Removing older vehicles of the road will also benefit the environment by dramatically reducing Co2 emissions.”
For more information contact Michael Travers or Anoushka Foster at Manchester PR agency SKV Communications on 0161 838 7770.
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