Quote Me Today

Quote Me Today

December 15, 2009 01:00 ET

Car Scrappage Extension 'Short-Sighted' Say Motor Trade Insurers

KENT, UNITED KINGDOM--(Marketwire - Dec. 15, 2009) - Quote Me Today have reacted to the news of an extension to the Government's vehicle scrappage scheme by describing it as 'short-sighted.' According to the Kent-based insurers, the Government has failed to take into account the negative effect this will have for many people in the U.K, most notably independent used car dealers.

The firm, one of the U.K's largest providers of motor trade insurance are seeing many of their customers struggling, with a fall in demand for used models, due to the vehicle scrappage scheme. This has made purchasing a new car a more attractive proposition for customers.

So far, over 200,000 British motorists have taken advantage of the scheme, which offers discounts of Pounds Sterling 1000 or more off a new car, when trading in a model which is at least 10 years old. The popularity of this has prompted the Government to release subsidy funding for up to 400,000 people to take advantage of the offer.

The scrappage scheme was introduced in a bid to revive Britain's ailing car manufacturing industry. Despite this, recent statistics have revealed that none of the top 10 most ordered cars under the scheme are actually manufactured in the U.K.

Critics have argued that this demonstrates a lack of foresight from the Government, as the fall in demand for purchasing and maintaining used models could put thousands of British jobs at risk.

Kent-based Quote Me Today specialise in cheap motor trade insurance, with a wealth of experience in providing cover to independent dealers from across the U.K. Using a panel of insurers, they offer unrestricted access to the most affordable and appropriate cover.

A spokesperson for the Quote Me Today commented on this news by saying:

"Contrary to media reports, the Government scrappage scheme is not all good news for the motor trade, particularly for our clients, many of whom are independent car dealers. The scheme will also have a knock on effect on businesses such as MOT centres and car parts manufacturers, who rely on people servicing and maintaining older models."

Continued:

"Despite the fact that the scheme was introduced in order to protect Britain's car industry, the fact that none of the top 10 most popular vehicles purchased under the scheme are manufactured in the U.K demonstrates that it is highly misguided. The Government has failed to recognise the detrimental effect that this will have for many smaller businesses within the car industry."

Note to Editors - The top 10 most ordered cars under the vehicle scrappage scheme are the Kia Picanto, Fiat Panda, Fiat Grande Punto, Hyundai i10, Toyota Aygo, VW Fox, VW Polo, Ford Fiesta, Vauxhall Corsa and the Peugeot 107.

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