2009 saw a continued troubled economy with all the ingredients of a recession, including the tightening of purse strings and a massive drop in new car sales. So, to do something about it, HM Gov. introduced the car scrappage scheme which allowed new car buyers to get a wedge of cash for their old motor, which would make a shiney new-car-smell more affordable.
Interestingly, they’ve got a similar scheme in the USA called the Car Allowance Rebate System or CARS, clever, see what they did there? But research conducted at the beginning of 2010 has revealed that CARS scheme buyers have a higher repossession and late payment rate than those who bought their new car for the full price. Nearly 5% of the buyers have received a repossession order for their vehicles compared to a similar group of buyers not using the scheme facing a 2% repossession rate.
Seeing as what happens in the US usually acts as a fore-warning for the UK, we could well see a whole load of car repossessions as a result of the Scrappage scheme.
Tags: avoid repossession, house repossession, repossession order, stop repossession