International progress of the car scrappage scheme

The Government has released reports that their car scrappage scheme has recently reached the half way mark as over 155,000 new cars have been ordered. The introduction of newer range car models exchange for 'old bangers' under the scheme also means a rise in new vehicle insurance policies.

Over £300 million was invested in the scheme and this new announcement also signals that half the money allotted has also been used in transactions.

Almost one fifth of these were made in the South East of the country and many attribute this new scheme to the rise in car sales in July. The incentive pays £2,000 to car owners who scrap their old banger registered before 31st August 1999 for a new car, half of which is paid for by the government the other half by the car industry.

However it is not only the UK car scrappage scheme that has taken a bashing. Germany has been exercising a similar model with drivers receiving 2,500 euros for each crap car and the project has been flooded with over 1.7 million enquiries.

On the other hand, German authorities are suggesting that the scrappage scheme is being widely abused. They recently discovered a tanker in the Hamburg port filled with nearly 40 old used cars, which should have been crushed in accordance with the government's scheme, but had illegally been resold on the African continent.

They suggest that nearly 50, 000 cars could have been shipped due to lax controls and the criminal organisation of gangs and a poor scrap metal market in Germany.

Insure My Vehicle provides car insurance, van insurance and motorbike insurance for vehicle owners across the country, acknowledging the legal requirement to have car insurance they source the lowest possible premium.

August 12^th 2009

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