Scrappage scheme fuels one in five new car orders
Published Friday, 29th May 2009
Figures released today show the Government’s £2000 car scrappage scheme has proved popular with consumers, as manufacturers reported taking more than 35,000 orders since the programme’s announcement.
That amount comes to one scrappage scheme order out of every five new car orders in this period.
“This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars,” said Prime Minister Gordon Brown.
Business Secretary Lord Mandelson added, “Even after two weeks the sales figures are impressive.”
The UK scheme, backed by £300 million from Government and matching funds from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain in the wake of falling sales. It also aims to get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.
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Safer the vehicles will be, environmentally the air quality will improve, but this is short term pseudo-sustainability. Life-cycle considerations place the cost for the production of a £15k car at more than 4ktCO2e (German 2002 EIO model). If the differential efficiency of the old vehicle to the new one is as much as 30mpg, it will take in the order of 80000 miles of driving to payback the cost of the new car.
Of course this is great news but despite a perfect credit rating, my application for finance was still declined because I am self employed and I do not have 3 years full accounts.
I really wanted a new car but quite frankly I am gutted by this.
Andy