New scrappage surprise
November 6th, 2009 by Richard Aucock
SCRAPPAGE incentives will not only save lives, but also save the Government millions of pounds, say experts.
The IAM says the scrappage scheme has helped put lots of Euro NCAP-starring new cars on the road.
These have replaced old bangers, which often lack ABS, airbags, traction control or other safety measures.
Which will, says IAM director Neil Greig, ‘undoubtedly save lives in the future.’
So far, the UK scrappage incentive has cost the UK Government £400 million. A big proportion of this will be handed back in the form of VAT – but Greig says the savings could be far bigger still.
‘With fatalities costing the economy £1.8m each, it could represent a significant potential saving for the taxpayer, more than covering the costs of the scheme itself.’
Yet another example of how scrappage is helping not only the industry, but motorists themselves, too.
New car sales best gain of 2009
Tags: iam, new car scrap, scrappage