This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8054679.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| UK car scrappage scheme launches | UK car scrappage scheme launches |
| (about 2 hours later) | |
| Drivers with cars that are more than 10 years old can now scrap them in return for a £2,000 discount on a new model, as the car scrappage scheme begins. | Drivers with cars that are more than 10 years old can now scrap them in return for a £2,000 discount on a new model, as the car scrappage scheme begins. |
| Business Secretary Lord Mandelson said the £300m scheme would "provide a boost to the industry and kick-start sales". | Business Secretary Lord Mandelson said the £300m scheme would "provide a boost to the industry and kick-start sales". |
| But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. | But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. |
| New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. | New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. |
| In terms of shifting new cars it's not going to do as much as hoped Kieran Puffett, editor of car price guide Parker's class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=6446&edition=1">Send us your comments | |
| Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. | Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. |
| "There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's. | "There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's. |
| "An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car. | "An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car. |
| "They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped." | "They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped." |
| 'Flood of enquiries' | 'Flood of enquiries' |
| Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. | Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. |
| Manufacturers will provide at least a similar discount, and so far 38 have signed up. | Manufacturers will provide at least a similar discount, and so far 38 have signed up. |
| In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers Edmund King, AA president | In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers Edmund King, AA president |
| Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. | Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. |
| Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". | Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". |
| Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. | Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. |
| And it said that even if only 1% of motorists took it up, it would be over-subscribed. | And it said that even if only 1% of motorists took it up, it would be over-subscribed. |
| The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. | The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. |
| President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." | President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." |
| He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. | He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. |
| But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". | But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". |
| "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." | "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." |