Only 4% of Drivers Consider Scrappage Scheme

Wed, 08 Jul 2009
A mere 4% of drivers have considered the government's scrappage scheme, research by motor insurer swiftcover.com reveals. A third would like to use the scheme, but say their cars are not eligible, whilst over a quarter (27%) of cash-strapped drivers think that buying a new car is a waste of money.

Swiftcover.com found

4% of people have actively considered the government's scrappage scheme

33% would like to use the scrappage scheme, but their car is not eligible

27% of drivers think buying a new car is a waste of money

17% think they can get a better deal on a new car without the scrappage scheme

9% would use the scheme if it were cheaper than buying a pre-registered or nearly new car

The news comes as swiftcover.com reveals that many drivers are facing rising costs: almost seven out of ten (69%) drivers say their motoring costs have increased in the last 12 months, with 64% of drivers blaming government road and fuel taxes for the higher costs.

Drivers want more done to reduce the cost of motoring: three out of ten (29%) would rather see higher taxes on luxury vehicles to subsidise poorer drivers, 22% of people feel commercial vehicles should pay higher taxes, and a similar number (21%) say road tax should be replaced with toll roads so people travelling more would pay more. Although they're not that keen on the scrappage plan, a third of motorists still believe that better tax incentives for greener cars would help reduce the cost of motoring.

Tina Shortle, marketing director of swiftcover.com, says the government needs to consider more radical measures to kick start the car market. She says: Our research shows that many drivers are hurting financially, so initiatives such as the scrappage plan do little to invigorate the marketplace because they don't address the problem of affordability. Many drivers feel new cars are still too expensive or they can get better deals without the scrappage rebate.

swiftcover.com's Money Saving Motoring Survey found:

Motoring costs

69% of people say their motoring costs have increased in the last 12 months

64% blame increases on the government for high fuel and car taxes

13% blame increases on petrol companies due to the high cost of fuel

78% believe improving public transport will reduce motoring costs

33% think better tax incentives for greener cars will reduce motoring costs

29% say there should be higher tax on luxury cars to subsidise poorer drivers

22% say commercial vehicles should be taxed more to subsidise private drivers

21% would replace road tax with toll roads, so those travelling more pay more

18% say that high-polluting cars should be taxed more

9% favour banning sports cars and 4x4s to reduce motoring costs

9% believe older, high-polluting cars should be compulsorily scrapped

Shortle adds: "We found that there is an appetite for greener motoring, particularly as some greener cars can help reduce motoring expenses via lower running costs and cheaper insurance premiums. The government should consider other options that can cut motoring costs more significantly and encourage drivers to choose vehicles that are less harmful to the environment."

Drivers insuring green cars, such as hybrid vehicles like the Honda Insight and Toyota Prius, are exempt from the Congestion Charge and receive a 10% discount on their insurance premium with swiftcover.com.

Research was carried out amongst 872 drivers in July 2009

More at www.swiftcover.com

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