Only 4% of Drivers Plan to Use Car Scrappage Scheme

Wednesday, 01 July 2009

A mere 4% of drivers are planning to make use of the government's scrappage scheme, research by motor insurer swiftcover.com reveals. Over a quarter (27%) of cash-strapped drivers think that buying a new car is a waste of money, while three out of ten (29%) would rather see higher taxes on luxury vehicles to subsidise poorer drivers.

The car insurance company found that almost seven out of ten (69%) drivers say their motoring costs have increased in the last 12 months. 64% of drivers blame government road and fuel taxes for the higher costs and want more done to reduce the cost of motoring: in addition to taxes on luxury cars (29%), 22% of people feel commercial vehicles should pay higher taxes, and a similar number (21%) say road tax should be replaced with toll roads so people travelling more would pay more.

Although they're not that keen on the scrappage plan, a third of motorists still believe that better tax incentives for greener cars would help reduce the cost of motoring.

Tina Shortle, marketing director of swiftcover.com, says the government needs to consider more radical measures to kick start the car market. She says: "Our research shows that many drivers are hurting financially, so initiatives such as the scrappage plan do little to invigorate the marketplace because they don't address the problem of affordability. Many drivers feel new cars are still too expensive or they can get better deals without the scrappage rebate."

swiftcover.com's Money Saving Motoring Survey found:

Scrappage

• 4% of people intend to use the government's scrappage scheme
• 33% would like to use the scrappage scheme, but their car is not eligible
• 27% of drivers think buying a new car is a waste of money
• 17% think they can get a better deal on a new car without the scrappage scheme
• 9% would use the scheme if it were cheaper than buying a pre-registered or nearly new car

Motoring costs

• 69% of people say their motoring costs have increased in the last 12 months
• 64% blame increases on the government for high fuel and car taxes
• 13% blame increases on petrol companies due to the high cost of fuel
• 78% believe improving public transport will reduce motoring costs
• 33% think better tax incentives for greener cars will reduce motoring costs
• 29% say there should be higher tax on luxury cars to subsidise poorer drivers
• 22% say commercial vehicles should be taxed more to subsidise private drivers
• 21% would replace road tax with toll roads, so those travelling more pay more
• 18% say that high-polluting cars should be taxed more
• 9% favour banning sports cars and 4x4s to reduce motoring costs
• 9% believe older, high-polluting cars should be compulsorily scrapped

Shortle adds: "We found that there is an appetite for greener motoring, particularly as some greener cars can help reduce motoring expenses via lower running costs and cheaper insurance rates. The government should consider other options that can cut motoring costs more significantly and encourage drivers to choose vehicles that are less harmful to the environment."

Drivers insuring green cars, such as hybrid vehicles like the Honda Insight and Toyota Prius, are exempt from the Congestion Charge and receive a 10% discount on their insurance premium with swiftcover.com.

Research was carried out amongst 872 drivers in July 2009

ENDS

Notes to Editors
For press enquiries please contact:
Joshua Van Raalte or Paul Beadle
Brazil (PR agency for swiftcover.com)
01865 556 000
swiftcover@agencybrazil.com

About Swiftcover:

Based in Cobham, Surrey and employing over 350 people, www.swiftcover.com started trading in June 2005 and was born out of a desire to revolutionise the general insurance market.

swiftcover.com offers car, travel and pet insurance online, and is Britain's only insurance company without call centres, which means that the cost savings can be passed directly onto the customer and premiums are kept low. In 2008 swiftcover.com featured as the cheapest insurance quote on the comparison website moneysupermarket.com more often than any other insurer.

This powerful operating model combined with successful marketing and competitive pricing has proven to be a tremendous success. In 2008 swiftcover.com achieved over half a million live policies and in May 2009 sold their one millionth policy. They are considered to be the fastest growing insurer in the UK.

In 2007, AXA UK acquired swiftcover.com. It is now a wholly owned subsidiary of AXA Insurance UK PLC which forms part of AXA Group.

About AXA:

AXA UK is a part of the AXA Group. AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of June 30 2006, had €1,091 billion in assets under management. AXA reported total IFRS revenues of €72 billion and IFRS underlying earnings of €3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.

Bookmark this article:               

Press Releases Home