Scrappage scheme will have ‘no impact’ on sub-prime customers

The government’s plan to offer a £2,000 discount on a new car or
light van for anyone scrapping a vehicle over 10 years old will
have very little impact on sub-prime customers, said ACF Car
Finance Ltd.

The scheme is due to be introduced next week (12 May), but ACF
said that the incentive will largely pass sub-prime customers by,
as “the availability of suitable finance to purchase a brand new
car is unlikely to change,” the lender commented.

Sales and marketing director Norman Beaumont added: “The
majority of sub-prime customers wouldn’t necessarily qualify; they
tend to be in the market for cars which are three to five years
old, mainly due to the fact that the majority of sub-prime lenders
don’t extend finance to cover older vehicles.

“And in most cases, a customer who drives a car older than ten
years is not in a situation to have the access to the funding
required to buy a new car, so again would not be able to take
advantage of the incentive.”