Cash for Clunkers Car Scrappage Incentive Schemes

The British Government has confirmed that a £ 2000 car scrap page scheme will come into force as part of the budget announced on 22 April 2009. This means that owners of cars that are over ten years old, could get a grant of £ 2,000 to buy a new car in a move designed to promote sales of cars and help the automotive industry, while providing benefits for the environment by reduce the number of old and fuel inefficient cars on the road. Usually the old car should be scrapped entirely to the car scrap page rules apply, ie idea is to pay you to not dump your car in this way will remove an old inefficient cars off the road, thus reducing the overall carbon footprint of our rolling stock of cars. Stephen Scarf, Director General Finance and Leasing Association said: "The success of car scrap page scheme builds on the motorists are unable to replace their old cars. For this to work, that funding must be found.

AA acclaimed statement said drivers would be satisfied with a "generous" system. AA President Edmund King said: "Motorists will be pleased that a generous scrap page scheme has been given the green light. Scrap page incentive schemes are already in place in many countries in Europe and has seen consumer confidence begins to return to the car buying market." In Germany, in February, a Scrap page incentive scheme provided an increase in sales of new cars at 21 percent.

Car scrap page incentive schemes are certainly more focused than generic easing of credit availability. In Britain, however, been expressed doubts about whether the customers could and would undertake a major procurement in the current economic climate.

The government has been reluctant to introduce a scheme at a time when its finances are being stretched by a series of economic incentives packages. However, Chancellor Alistair Darling has been under pressure for several months to establish incentives that are designed to stimulate new car sales. The Scrap page Incentive schemes would not only would kick-start sales car manufacturers, but would return safely many employees jobs in the transport sector, both in production but also in sales. According to official figures from the Society of Motor traders and manufacturers (SMMT), 313,912 new cars were registered in March 2009 - a decrease of 30.5% compared with March 2008's figures. This is also partly due to the vehicle companies are cutting back sharply on production, only 59,777 cars were made in February 2009. But car sales fell by almost one third in March this year compared with last year.

Even on the back, some 600,000 of the 800,000 employees in the automotive sector, which maintains the vehicles already on the road, they are more likely to be disadvantaged for a scrap page program as a wave of consumers will trade their older, high -- maintenance of vehicles to modern cars.

But the car scrap page schemes seen as targeting the real cause of the industry's woes - a lack of demand for products. They also argue that the government, help the environment by replacing old, inefficient cars with cleaner, more efficient ones.