Older cars 'were not all scrapped'

Back

Fears that low car insurance premiums might become scarce after the scrappage scheme removed older cars from circulation have been defused by a motoring expert.

Honest John, who runs an advice website, said many vehicles from the late-nineties had reappeared on the used market, despite predictions most would be traded in under the government scheme.

Previously experts warned this could drive up the cost of the few remaining models, making lower policies hard to find, but Honest John said his visit to a British Car Auctions event showed there were bargains to be found.

"Reports that late 1990s cars had all but disappeared due to the scrappage scheme seem to have been greatly exaggerated" he said.

"For example, a 2000W Peugeot 206 1.4LX 3 door went for 650 pounds, 300 pounds below the listed trade price, and a solid 97R Nissan with 57,000 miles on the clock sold for just 350 pounds.

"What this sale told me was that the scrappage scheme did a good job, but it didn't wipe out late 1990s cars. That means that used buyers who don't have much money to spend will still be able to find a car that meets their budget. And that is crucial to keep Britain motoring."

Copyright © Press Association 2010

Get a car insurance or home insurance quote now.