Scrap benefits poorest
May 18th, 2009 by Richard Aucock
£2 billion will be pumped into the economy thanks to the scrap scheme – and the poorest motorists will benefit.
It’s younger and less well off drivers that an AA survey revealed are most likely to sign up
1 in 5 18-24 year olds reckon they’ll take part, for example.
Overall, 11 percent of men and 13 percent of women plan to utilise the scheme: the 15,000-response AA survey has gone further though, and analysed the types of people keen on it.
Take the 1 percent who says they will ‘definitely’ take part, for example. Narrow this to semi or unskilled workers, or pensioners, and this group doubles.
As 1 percent equates to 300,000 motorists (and sales), this means the scheme is likely to be seriously oversubscribed!
Over half of motorists won’t be able to take part, though: 53 percent of car owners have an ineligible car.
Even so, Edmund King, AA President, was certain that the scheme will be beneficial. ‘In one go, the scheme will transform the chances of survival in a crash for thousands of car owners.
‘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.’
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