UK’s leading car buyers provide blueprint for a green scrappage scheme

The two trade associations representing the UK motor finance and fleet sector have urged Ministers to develop an ambitious car scrappage scheme that tackles air quality, drives EV uptake and encourages more sustainable travel behaviour.


BVRLA Chief Executive Gerry Keaney

In a letter to HM Treasury, the Department for Transport and BEIS, the BVRLA and FLA outline a set of ten principles upon which any scrappage scheme should be built.

BVRLA members represent the demand side of the automotive sector, owning and operating over five million cars, vans and trucks, including more than 90,000 battery electric vehicles. Its members buy around 50% of new vehicles sold annually and spend more than £30 billion upgrading their fleets each year. FLA members provided £48 billion of new finance to help households and businesses purchase cars in 2019 and are responsible for 91% of all private new car registrations.

The automotive sector has a massive supply chain, workforce and economic footprint. The speed and strength of its recovery will play a major role in determining how the wider UK economy rebounds. The right demand stimulus package will boost any recovery and support delivery of the UK’s transport decarbonisation ambitions.


Adrian Dally, Head of Motor Finance at the FLA

The two association’s ten principles for a green car scrappage scheme ask the Government to:

  1. Act quickly
  2. Be bold
  3. Prioritise NEW and USED EVs
  4. Don’t forget about air quality
  5. Support fleet and private buyers
  6. Make a difference where it matters
  7. Drive transport behaviour change
  8. Be purchase-channel agnostic
  9. Work with all financing models
  10. Think long-term

BVRLA Chief Executive Gerry Keaney said: “BVRLA members make a massive economic contribution to the UK automotive sector through the millions of vehicles they purchase and their activity in dealerships, garages and the used vehicle market. This enormous purchasing power can and must be harnessed to deliver a swift rebound in the economy and a faster trajectory towards transport decarbonisation.”

Responding to news that the Government is looking to implement a scrappage scheme to stimulate the market offering up to £6,000 off the purchase price of a new vehicle, Keaney goes on to say: “To be truly effective, any EV stimulus scheme must work for both the new and used market.

“It should make the UK a more attractive market for OEMs to sell their EVs and help those who cannot afford to buy a new electric car to purchase or lease a used one. Any scheme that focuses solely on supporting new vehicle sales could damage the residual values of ex-fleet cars and thus hinder the sector’s ability to invest in new electric vehicles.”

Adrian Dally, Head of Motor Finance at the FLA, said: “Getting Britain moving again will require many businesses and consumers driving newer and cleaner vehicles at prices they can afford. This stimulus will come at the right time to support jobs and households across the whole of the UK.”

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