Should a government supported car scrappage scheme go ahead, it ought to be linked to a bank loan tie-in.

That’s the view of industry expert Professor Peter Cooke, who said any car scrappage initiative needed to be handled carefully.

“There needs to be a link between the financial incentive and a bank loan to top it up,” suggested Cooke, head of the Centre for Automotive Management at Buckingham University.

“A £2000 scrappage payment must be seen as a starter pack that enables more credit to be obtained from banks, subject to the normal credit checks.

“There should also be limitations on the cars that can be scrapped. In Germany their scheme is working very well. But it’s sucking in all sorts of cars from Poland and surrounding areas. So any car scrappage scheme needs very careful consideration from the government. Owners need to prove the car has been taxed by them for the last nine months, and so on.”

Professor Cooke was speaking at the launch of Managing Your Company Cars – Expert Opinion. The book has been edited and produced by Colin Tourick, author of the Total Card-supported Business Car Manager Knowledge Bank factsheets. Editor Ralph Morton is one of the contributors to the new book.

Further information

See the Special Report Car scrappage scheme would save lives

For more commentary on Colin Tourick’s new book, read the Editor’s Blog Launch of Managing Your Company Cars: Expert Opinion
More caution needed for car scrappage plan