The BVRLA – the UK trade body for vehicle leasing and rental companies – has written to the government to propose that it does more to free up financing and has also suggested that a scrappage incentive be introduced that applies to used cars as well as new ones.
The BVRLA has written to the secretary of state for Business, Enterprise and Regulatory Reform – Lord Mandeleson urging the Government to widen the scope of its plans aimed at helping car companies’ finance arms.
“Our members purchase over 45% of all new cars registered in the UK and play an essential role in helping businesses and consumers drive safer, cleaner and more fuel-efficient vehicles,” said John Lewis, chief executive of the BVRLA.
“Many of them are finding it difficult to gain access to sufficient funds to be able to supply the cars that their customers want.
“The Government is helping manufacturers, but this help could be in vain if car buyers aren’t able to finance their purchases.”
The BVRLA letter also urges Lord Mandelson to consider following in the footsteps of Germany and other EU nations by introducing incentives for motorists to trade in their older, more polluting cars for cleaner ones.
“We believe that there are compelling reasons for a car scrappage scheme to be made available to buyers, whether they are purchasing new vehicles or fuel-efficient second-hand ones,” said Mr Lewis.
“Even with a scrappage incentive, it is highly unlikely that anyone will be able to trade from a 10 year-old gas guzzler to a new car in one jump.”