Government Scheme Would Be Good For Car Loans And Motor Industry
The current recession in the UK is taking its toll on business and industry across all markets and one of the worst affected industries is that of car manufacturers, many of whom are struggling to keep going as consumers are simply not prepared to commit their money, or take out a new personal loan to buy a new car in the current economic climate.
But experts believe that a recent government proposal to introduce a scrapping scheme would benefit those individuals needing a car loan, the motor industry and the environment.
The scheme is designed to offer incentives to people who scrap older cars, which cause more pollution than new ones, by providing discounts on the price of a new vehicle, along with additional government funding to be used to offer cheap loans to consumers for the specific purpose of buying a car.
The scrapping scheme is clearly beneficial in all respects, but the government has not yet made a final decision on the plan and of course this is currently having a detrimental effect on the motor industry, as many people who might have already taken out a car loan and bought a new vehicle are now waiting to see if the scheme will be introduced, thereby reducing car sales even further for the time being.
AA personal loans, who provide a large number of unsecured loans for car purchase, have urged the government to make a decision on the scheme quickly, in order to give a much needed boost to the motor trade. Mark Huggins, director of personal loans at the AA, commented on the proposed scheme, he said “A scrappage proposal ticks all the right boxes. I believe it would be a popular move and would allow many families to buy their first brand new car.”
