Budget changes could cease four-year low in car purchases, says Sainsburys

Mon, 27 Apr 2009

Alistair Darling's car scrapping scheme, announced in the annual Budget report last week, will help turn around the decline in car sales over the past four years, according to car insurance provider Sainsbury's Finance .

The scheme will mean that car owners looking for an upgrade will get £2,000 to spend on a new vehicle if their current car is over ten years old and they take it to be scrapped.

Research by the car insurance provider shows that the number of people looking to purchase a vehicle now is at its lowest level since 2005, and while the car scrapping scheme will help, there is a long way to go, according to Sainsbury's.

Steven Baillie, head of loans at Sainsbury's Finance, said: "This scheme gives car buyers another option to help them afford a new car, and we hope it pays off for the motor industry."

The government has also recently announced plans to apply instant fines to those found driving without car insurance .
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