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car scrappage plan

UK Car Scrappage Plan? | Yes, Please

by admin on April 22, 2009

If, likely when, the UK Government announces a new car scrappage scheme in its budget on April 22nd, the potential environmental impact will be debated ad nauseum, or worse. So, before we get lost in the back and forth of it all, let’s go straight to the experts and find out the real score.

UK consumer advocate website cleangreencars.co.uk weighed in and the verdict is clear: a carefully targeted scrappage incentive for car owners could boost car sales while achieving a long-term reduction in CO2 emissions.

scrap-vauxhall5-300x196 UK Car Scrappage Plan? | Yes, Please

If a scrappage incentive (‘bangers for bucks’) scheme were available for new cars emitting under 130g/km of CO2 (the EU target for 2012), and, it were used to scrap cars which are at least 10 years old - cleangreencars calculations show that savings in CO2 output would more than balance the extra CO2 produced in the manufacture of the cars.

Who are we to argue that? What’s good for the environment is good for us all. Debate all you want, but you can’t possibly make an argument against that point. The cleangreencars numbers suggest that any short-term spike in CO2 output that would result from the scrappage of old cars and the manufacture of new cars is more than overridden by the additional low-emission cars. The national vehicle population would provide a net CO2 emissions reduction within six years time. Indications are that any government incentive scrappage plan would apply to cars and light vans that produce more than 150g/km CO2 and that are more than eight years old. If this is indeed the case, an even greater net benefit than stated above would occur, as a greater number of cars would be eligible for the offer.

It is expected that the scrappage scheme will allow consumers to take back approximately £2,000 from the value of their old car and put it towards a new or nearly-new, “greener” car. But will this incentive be enough to kickstart the entire sagging UK car industry? That’s a question for another blog. But far as the environment is concerned, the numbers show that the benefits of introducing a scrappage scheme in the UK is indisputable.

No debate required, actually. Your 2 cents are welcome below.

SOURCE: cleangreencars.co.uk | Vauxhall.co.uk

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UK Scrappage Plan | Bangers For Bucks

by admin on April 22, 2009

If you thought the domestic car industry was going to the heap, turns out you might be right.

You might remember the car scrappage scheme that existed some years ago in Ireland and other parts of Europe. It offered a money incentive to consumers who were prepared to trade in their old cars in an effort to remove cars ten years and older from our roads. It seems this scheme, or one similar, is set for a return. This week, tucked into the UK budget, introduction of a car scrappage scheme in the UK seems a certainty.

scrap21 UK Scrappage Plan | Bangers For Bucks

Well done Gordon, that’s only a year behind every other major country in Europe. Maybe he was waiting for Liechtenstein to get onboard as well, we’re not sure, but one thing we do know is that EU giants Germany, France, Italy and Spain are already in the midst of clearly successful government funded scrappage schemes. With calls for action for the UK’s struggling automotive sector have growing louder by the day, it finally looks as though some sort of plan is on the way here too.

As you might imagine, domestic major car manufacturers like Vauxhall are completely sold on the plan as well. Why? There is plenty of evidence that getting bangers off the road is just good business. In Germany, the coalition government is set to extend the €2,500 scrappage premium for consumers who trade in their 10-year-old cars for newer, more fuel-efficient models. The plan has attracted 570,000 new car buyers so far. The French equivalent, worth €1,000 for each car, has also boosted sales, prompting Renault to move its production of the Clio model back to France and create 400 jobs.

The proof is in the pudding. While sales have been falling dramatically in the UK - new car registrations in Germany rose 40% in March and in France increased by almost 10%.

On the back of the obvious success indicators, there has also been a public outpouring of support for the plan. From E-Petitions on the official website of the Prime Minister’s office http://petitions.number10.gov.uk/scrappagescheme/ to the UK blogosphere, majority opinion seems to be in support of anything that gets the industry jumpstarted. In an unprecedented move, the editors and publishers of Britain’s biggest car magazines and websites have recently joined forces to urge the Government to support demands to stimulate new car sales in the UK.

darling UK Scrappage Plan | Bangers For Bucks

When the scheme gets the expected go ahead, the voucher would apply to cars and light vans which produce more than 150g/km CO2 and which are more than eight, perhaps nine, years old. When consumers trade in their older, less environmentally-friendly cars, they would save up to £2,000 on a new or nearly-new vehicle. For this reason, scrappage should appeal to ministers since it would help the Government achieve its target of a 20% reduction of CO2 emissions by 2020 and furthermore a market recovery would see an increase in tax from car sales. This makes the scheme virtually self-funding, thanks to the resultant increases in VAT takings.

Will the bangers for bucks scheme be the savior some make it out to be?

We’re about to find out.

SOURCE: The Times | Vauxhall.co.uk

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