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Scrappage schemes adopted by 11 EU members

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Wednesday, 8 April 2009
Category: Car fleet

Eleven EU countries have now introduced a scrappage scheme to stimulate demand for cars, the European Automobile Manufacturers Association has reported.

The number adds pressure on the government to introduce a similar scheme in the UK, said Mark Huggins, director of AA Personal Loans.

"A scrappage proposal ticks all the right boxes. I believe it would be a popular move and would allow many families to buy their first brand new car," he said.

"But the uncertainty means some potential buyers are putting off their purchasing decisions."

Scrappage schemes, it has been argued, will not only stimulate demand for new cars - thus supporting the motor industry - but would also reduce the UK's CO2 emissions as newer models typically emit smaller levels of CO2 per km.

Germany's scrappage scheme offers owners of older cars €2,500 (£2,200) to spend on a new model, in return for scrapping their old vehicle.
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