RMIF call on Government to action vehicle scrapping scheme

The Retail Motor Industry Federation has again called on the Government to implement a scheme which gives an incentive for owners to scrap vehicles over 9 years old. This has a dual benefit, both environmental and economic - typically newer vehicles produce less emissions, so a scheme designed to take older cars off the road will have a beneficial impact for the environment. The scheme would also bring renewed impetus to the ailing Motor Trade

The potential scheme has been welcomed by Motor Traders who are struggling in the uncertain economic climate. iQuote Insurance have also extended a hand to struggling Motor Traders to beat the credit crunch. Until the end of March there is a 10% discount on any Motor Trade Insurance Policy.

When a similar vehicle scrapping scheme was introduced in Germany the government offered €2,500 to motorists to scrap older vehicles. This has kick started the car sales market, with a 300,000 unit increase expected in 2009 as a direct result of the scheme. Before the move in Germany sales were predicted to fall by 10%, so a 300,000 increase would be a significant achievement.

Within the last week there have been discussions both within Government and in the House of Lords. iQuote Insurance are keen to extend our support to the growing swell of voices in support of this scheme. This scheme can deliver benefits to the environment and to the Motor Trade industry and should become legislation as soon as possible. Any delay will have an impact on the long term prospects of the industry as a whole.