UK car scrappage scheme has wide appeal

Two months on after the launch of the UK car scrappage scheme new research from specialist insurer RIAS highlights almost one million eligible UK motorists would like to use the car scrappage scheme to purchase their next new car, yet only up to 300,000 car sales under the scheme will be available.

Three times more motorists want to use scheme than funding allows

Figures from the over 50s insurance provider show that 948,000 motorists who have a car 10 years old or over would like to purchase their new car under the scrappage scheme in the next six months. This equates to over three times the amount of car sales allowed under the current scheme parameters. Over 50s make up 40% of these drivers who would like to use the scrappage scheme, equivalent to 384,000 people.

On average, these eligible motorists set to buy a new car in the next six months are prepared to spend over £10,000 on purchasing their new vehicle.

Reducing motoring costs is a key concern for consumers

In addition to the potential cost efficiencies presented by the scrappage scheme, nine out of ten of all motorists (88%), whether eligible to take part in the scheme or not, are taking active steps to reduce their motoring costs, including 13.4m over 50s.

Janet Connor, Managing Director at RIAS comments: "Our latest research report shows that the UK car scrappage scheme has certainly captured the imagination of motorists across the country. In the current climate the £2,000 scrappage incentive is an attractive option for people in the market to buy a new vehicle, and who are concerned about their motoring costs.

"UK motorists are being enterprising in terms of undertaking specific strategies to reduce their motoring spend. Shopping around at renewal for motor insurance is one of the best ways to ensure consumers are getting the most comprehensive cover tailored for their needs, at the right price for them. And with over half of over 50s making fewer journeys, as well as four out of ten drivers reducing their driving speed, our research underlines why older drivers can present a better insurance risk, and enjoy more competitive premiums because of their actions."

For more information about motor insurance available from RIAS, as well as the full product range, visit rias.co.uk