Motor Trade to take back your old banger

In the European Parliment a new law is expected to be passed that will force the Motor Trade to take back cars at the end of their life. This is being heralded as the returnable car, which will force manufacturers to make vehicles from more recyclable materials.

There is a dramatic need to recycle within the Motor Trade, as 10% of all hazardous waste in Europe is generated from motor vehicles. Ultimately the issue is whether the industry can afford to achieve this ambitious recycling program in the time required. To help cut costs now within the industry get a motor trade insurance quote from iQuote Insurance. This is a measure that could save money today.

Vehicle makers are resiting the ‘End of Life Vehicle Directive’ strenuously, due to increased costs - which makers claim in the current climate will force them into bankruptcy. The aim of this new legislation is to ensure that more materials are recycled from the 8million vehicles that end their useful life in the EU each year. The UK is responsible for 25% of these vehicles.

The one thing that all parties including the manufacturers agree is that more of the materials in vehicles must be recycled. However the industry is in favour of an 10 year aim to recover 95% of the materials in the vehicles which are scrapped. Whereas the directive would force car makers to take back their product.

Dramatic slump in new car sales

The level of registered new car in the UK fell by almost 30% in January 2009, this is a reflection of the lack of consumer credit and poor economic conditions. Hardest hit has been the luxury end of the market, with the reduced number of buyers left in the market looking for more modest vehicles.

Many European car makers have either cut or completely suspended production to help ease the backlog of new vehicles waiting to come on to the market. January's figures mark the ninth successive fall in new car registrations.

In these tough economic times, there are signs of a modest uplift in the second hand car market; a much needed boost for Motor Traders. At iQuote Insurance we would also like to help hard pressed traders, if you take out a Motor Trade policy with us during February, you can save up to 20% off your renewal premium!