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Vehicle scrappage scheme

New scheme will benefit poorer drivers according to AA/Populus poll

18 May 2009

Trade-in a 10 year old car for scrapping and you can get £2000 off a new one

The vehicle scrappage scheme which starts today (Monday 18 May) will not only pump an extra £2 billion turnover into the UK's ailing car sector but give the country's most disadvantaged and unprotected drivers a lift, new research for the AA shows.

An AA Populus Panel survey of nearly 15,000 AA members1 last week found that younger and lower-income drivers are most likely to take up the offer.

Asked if they had definitely decided or considered buying a new car under the scheme, 20% of 18-24 year olds said count us in. This compares to 11% of drivers overall, with women more interested than men at 13%.

The 1% of respondents (equivalent to 300,000 drivers) who say they will 'definitely' scrap and buy new doubles among the group that includes semi or unskilled workers and pensioners. Even if 1% of motorists take up the scrappage scheme offer, the £300 million set aside by the Treasury will be over-subscribed.

53% of respondents did not qualify for the scheme as they did not have a car ten years old or older.

Comment

Edmund King, AA President said: "In one go, the scheme will transform the chances of survival in a crash for thousands of car owners whose current old cars would only have two-star crash test protection under Euro NCAP compared to the average four or five-star protection of newer models. Younger drivers, carrying several passengers, in older cars, are most at risk on the roads and seem most keen to participate in the scrappage scheme.

"This scheme has the potential to bring brand new car ownership to some of the UK's most disadvantaged drivers for the first time. In effect the £2000 incentive can act us a deposit against loans for many less-well-off drivers".

Factfile

1Populus received 14,743 responses from AA members between 1-8 May 2009

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18 May 2009