CALL FOR GOVERNMENT TO FAST TRACK SCRAPPAGE SCHEME AS 'GREEN' CARS LOSE STREET CRED

Figures released today from leading motoring website Motoring.co.uk reveal that demand for green cars is down by over a tenth (16 per cent) since February 2009; despite an overall increase of 58 per cent in online car searches since December 2008.

Motoring.co.uk warns that credit crunch woes are to blame for the reduction in demand for green cars.   The website reveals that although online searches have increased, consumers are looking for cheap buys and the industry is slowing down.   It is calling for the government to stop stalling on introducing its scrappage scheme.

It's hoped the scheme will be a part of the budget due out next month.   The scrappage programme, which has proven successful in Europe*, offers people a £2000 incentive to scrap their old car in place of a newer, less eco-damaging car.  Motoring.co.uk managing director, Richard Mason warns that any hesitation in launching the initiative could prove disastrous for the industry.

Richard Mason, managing director at Motoring.co.uk discusses the negative influence the delay of the Government's announcement for the scrappage scheme: 'The worst thing the Government can do is delay taking action, as this will result in a further slow-down in car sales as consumers wait for its implementation. Promotion of the new car industry remains the most important objective in the current climate to help prevent further job losses. Frankly, the government needs to stop resting on its laurels and get on with it.

'Given that most new cars are priced in excess of ten thousand pounds, the VAT from sales alone will ensure the government more than covers its proposed £2000 scrappage incentive. With half a million motoring jobs at risk, the introduction of the scrappage scheme, which has been highly successful in Europe, will help encourage activity in the motoring industry by promoting the sale of new cars.

Mason adds: 'My final point relates to the governments concern with restricting the scheme to UK cars only - this is ludicrous and entirely impractical; this scheme needs to be open to all cars for it to have any chance of success.

'Contrary to popular belief, 86 per cent of cars sold in the UK are imported, whereas the majority of cars that people think are made abroad, are actually manufactured in Britain, e.g. Toyota, Honda and (some) Nissan are all made in the UK. Similarly, Mini is owned by BMW and even Jaguar and Land Rover are owned by an Indian company.

'Besides the confusion it would cause to UK motorists, restricting this scheme would seriously impact its overall success, and we urge the government not to insist on futile conditions that would ultimately prove detrimental'.

Notes to editors:* The anticipated scrappage scheme is designed to encourage new car sales and get the UK car market moving again. Scrappage schemes are currently operating in Austria, France, Germany, Greece, Italy, Portugal, Romania and Spain, typically on cars over 10 years old. Germany has seen a soar in car sales of 21 per cent in the last month alone as a result of the scheme****.

In the UK, historically, consumers wanting to bin their old car would get £200 scrap value of their car. This was then substituted by new EU regulations whereby motorists had to pay to dispose of their car as scrap dealers have to remove all toxic elements from the car before it can be crushed sold-on and subsequently recycled. The result has been a significant increase in old cars on the road now than ever before, with April 2008 showing 12 per cent of cars being registered before 1987***. In the current economic climate there is little incentive for motorists to buy new cars.

Statistics used:

Green car searches on motoring.co.uk

**Total number of new car searches via the 'green' search functionality, has dropped from 6,443 to 5,413 from February to March; a reduction of 15.9%

Total car searches on motoring.co.uk

**Total number of searches for new cars in December was 1,408,151; total number of searches for new cars in March was 2,230,080. Therefore an increase 821,929 (58% rise)

*** 12 per cent of cars on the roads in 2008 were registered before 1987:

Table to show age of cars on the roads in April 2008 from the site: http://www.iam.org.uk/Resources/Institute%20Of%20Advanced%20Motorists/Documents/IAM%20MT/Motoring%20Facts/IAM%20Motoring%20Facts.pdf

Year of first registration

Total first registered

of which, still licensed at the end of 2006

Percentage still licensed

1980

1,495

11

1

1981

1,482

10

1

1982

1,574

14

1

1983

1,801

21

1

1984

1,749

25

1

1985

1,828

32

2

1986

1,859

46

2

1987

1,983

69

3

1988

2,163

115

5

1989

2,233

187

8

1990

1,921

241

13

1991

1,511

277

18

1992

1,492

392

26

1993

1,650

647

39

1994

1,778

906

51

1995

1,834

1,144

62

1996

1,944

1,406

72

1997

2,114

1,691

80

1998

2,247

1,894

84

1999

2,246

1,977

88

2000

2,330

2,106

90

2001

2,580

2,383

92

2002

2,687

2,510

93

2003

2,656

2,484

94

2004

2,607

2,483

95

2005

2,447

2,330

95

2006

2,336

2,190

94

1980-2006

54,545

27,592

51

****Scrappage scheme caused an increase in sales by 21 per cent in Germany: http://www.autobloggreen.com/2009/03/05/german-car-sales-rise-21-percent-uk-to-launch-vehicle-scrappage/ For further details please contact:

Kitty Parry                                                                                                                                          Kitty@templarspr.com   07736318413

Sian Worthington sian.worthington@moneyextra.co.uk 01616389815

Jennifer Rose Jennifer.rose@moneyextra.co.uk 07523 582661

About motoring.co.uk motoring.co.uk is one of the UK's leading motoring websites and offers one of the fastest and most convenient ways to buy or sell a car onlineProviding its customers with access to over 300,000 new and used cars at any one time, its wide-ranging service encompasses all aspects of buying, selling, hiring, financing and insuring a car. motoring.co.uk provides users with a more personalised experience compared to other motoring websites, by offering the ability to narrow search results by a variety of factors including lifestyle, green rating, insurance group and finance offers.  And because they refuse to feature advertising from new car brokers on the site, customers can be confident of a safe and secure transaction by dealing with approved franchised dealers only. In addition, customers can also benefit from free advice, research new cars, read reviews, converse with li

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