UK Car Scrappage Scheme Welcomed By AA Personal Loans

Fri, 24 Apr 2009

AA Personal Loans has welcomed the Chancellor's plans to introduce a vehicle scrappage scheme that will reward consumers who replace their older, less efficient cars with newer, more efficient models.

Under the scheme, UK car owners will receive a benefit of £2,000 - £1000 government grant and £1000 from manufacturers – in exchange for vehicles registered before 31 December 1999.

Mark Huggins, director of AA Loans, commented: "The AA has been pressing the Government to introduce such a scheme, which has been a success in other European countries, as a means of providing a boost for the ailing motor industry and help replace old, gross polluting vehicles with cleaner, greener and safer vehicles ."

"We're delighted that Mr. Darling's Budget has recognised the benefit of this scheme. The pot of £300 million could benefit 300,000 drivers and, coupled with a typical car loan of £8,000 could bring a brand new car within reach of many families for the first time."

He added that the scheme would prove popular among Britain’s car owners after an AA/Populus survey revealed that 28 per cent of UK motorists would consider "taking advantage" of an incentive scheme to scrap old vehicles if one was available.

Mr Huggins also welcomed the green credentials of the new scheme. He explained that if every ten year old vehicle in the UK was replaced with its new equivalent there would be a 30 per cent increase in fuel efficiency while CO2 emissions would drop by the same amount.

AA Personal Loans is currently offering its members a market-leading rate of 8.0 per cent typical APR on loans of between £7,000 and £25,000.
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