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Scrap Your Car- Save Some Money
By plrprousers | August 3, 2009
The new Government incentive that has been exercised recently is set to help improve the state of the UK motor industry. Despite a fall in new car sales of 15.7%, the drop is the lowest for over a year so there are signs that the industry is starting to recover.
The “scrappage scheme” launched by the Government offers a discount of up to £2,000 on new cars if the owner scraps a car that is 10 or more years old. This is a significant incentive and one that seems to be attractive to drivers who are looking to get rid of their old cars and save some money on a new one.
Since its launch in May, around 87,000 people have put in orders for new cars so the incentive looks to be having a positive impact on the motor industry. As long as your car was registered before the 31st of August 1999, then it should be able to be used as a part of this scheme.
The good news for the industry carries on as news that sales of cars to private owners also recently increased by 3% which was the first time the industry saw an increase since November 2007. One question has been who is going to cover the cost of the £2,000 discount? Well, the Government is going to cover half the cost with the motor industry covering the other half. This means there are no extra hidden costs for the customer which people may have feared when the policy was first introduced.
The new scrappage scheme is designed to persuade us to choose greener, more environmentally friendly cars and scrap the fuel-guzzling cars of the past. If the scheme is a success then there will certainly be calls to the Government to keep it going but as yet there are no plans. The scheme was due to end in April but due to the demand, the scheme looks set to end in October, six months earlier than planned.
Overall the new Government run scrappage scheme looks set to help turn the tide for the UK’s motor industry with sales of new cars to private owners increasing and the drop in sales reducing. It is hard to say what effect this will have on the economy as a whole but we will get a better view when the scheme comes to an end at the end of 2009.
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