Scrappage scheme 'already having an impact'

Apr 27 2009

The government's proposals to introduce an incentive for people willing to replace their old cars with modern versions is already helping to boost the industry, it has been claimed.

Chancellor Alistair Darling announced proposals to offer motorists driving old vehicles the opportunity to receive £2,000 in order to scrap their existing vehicle and replace it with a more environmentally-friendly modern version.

Although the initiative does not come into force until May this year, BuyYourCar.co.uk has reported it has already seen an increase in the number of people looking for vehicles as they prepare to take advantage of the scheme.

While the global recession has resulted in a growth in the number of people buying used cars, the new car market has suffered a slump.

It is hoped the new scheme will increase the number of people purchasing new cars, which could also help reduce the pressure on the used car market, and could result in more used cars coming through in the future.

A similar scrappage scheme has already had a huge impact in Germany, where 1.2 million motorists signed up to the initiative in the first two months after it was introduced at the end of January.

The German scheme has now been extended to meet the huge demand.

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