Smarter Market Info

The UK government’s scrappage scheme (where drivers receive 2,000 pounds toward a new vehicle if they scrap their old one) has proved very popular – for obvious reasons. Nevertheless, new research has indicated that less than half of the van drivers eligible for the vehicle scrappage scheme are thinking about taking up the offer.

A study performed by Budget van insurance discovered this data, even though more than 35,000 new vehicle orders have been placed nationwide since May 18th (the day the program launched). In fact, business secretary Lord Mandelson believes the deal has “got off to a flying start” and “given car sales a major boost and offers consumers a great deal.”

However, compared to the same time last year, the number of new vehicle registrations is actually 25% less. Mnveer Arkan, head of marketing at Budget Van Insurance noted, “Whilst the vehicle scrappage scheme is a welcome boost for motorists, it’s proving insufficient to help Britain’s small business owners who are having to keep a tight rein on their finances at the moment.” The costs of van insurance are putting off many people from trading their vans as they might have to pay again for their insurance.

In fact, many of the people questioned in the study did not believe that the scrappage scheme is going to help the country’s motor industry. Van drivers are one group that could benefit, as they could consider the different ways available to raise the money necessary for the purchase.

Aap, which is the UK’s largest endowment policy buyer, notes that some of its customers have indeed sold an underperforming endowment in order to help fund what it calls a “major lifestyle purchase.” These purchases could include a new van or a new car.

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