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Car Insurance May Increase For Scrappage Scheme Cars
By Rochelle Martinez
In an attempt to boost the car industry in Great Britain, the UK government have launched a car scrappage scheme aimed at attracting people to invest in a new car. The programme involves offering people a discount of £2,000 off the price of a brand new car if they are willing to ‘scrap’ there original car, providing it is 10 years of age or older.
On the face of it, the scheme looks a good one for both consumers and the UK motor industry, but some experts are warning that there could be some hidden surprises.
On average, it has been estimated it will take just 88 days from purchasing a new car, for the £2,000 benefit from buying the vehicle through the scrappage scheme, to be erased. This is due to the car starting to depreciate in value almost as soon as it leads the car showroom.
There is also the problem of people trading in old for new being able to afford the motor insurance for recently registered vehicles.
Despite the problems that have been highlighted, Lord Mandelson thinks it will be a great deal for customers wanting a new car and the struggling UK motor industry in these dire financial times. He said, “It will not just be a great bargain for the motorists, and a great opportunity for
them to seize, but of course it will be a great boost for those hundreds of thousands of people who work in, or are dependent on, the car manufacturing sector in our country, so it is a win-win all round.”
The £2,000 money off deal for consumers is a joint effort from the UK government and the car industry that are each paying £1,000. The programme is voluntary, but the majority of major car manufacturers have signed up to be included in the deal. There are many too that have decided to introduce their own sales incentives to help to boost their own new car sales.
For people to qualify for the scheme, the car they want to scrap as part of the exchange must have been registered in Britain on or before the 31st August 1999. The vehicle must have the correct DVLA documents in the name of the customer looking to buy the new car and the old vehicle must have been registered to the keeper continuously for at least 12 months. The old car must also have a current M.O.T. certificate and be a weight of up to 3.5 tonnes.
The new vehicle will not have had a former owner and be built to British specification. The car will weigh less than 3.5 tonnes and its first registration date will be 18th May 2009, the date when the scheme is launched.
Rochelle Martinez, Freelance Web Content Article Writer for three years. Some of her articles are about www.quinn-direct.com.
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