Cash for old cars proposals
Press release from RAC Motoring Services

FBHVC position paper

"Cash for old cars" proposals

This initiative is said to be targeted at 17 to 18 year old cars, the age at which cars in the UK probably tend finally to drop out of everyday use and are either scrapped or, in a relatively few cases, preserved and restored as a hobby car. So the proposals would probably be doing no more than slightly accelerating the natural wastage on economic grounds by introducing another economic factor. You would not expect to see specialist cars of that sort of age such as the RV8 being in the slightest affected by what is bound to be a fairly small financial incentive to scrap an "old" car.

Yes only a sample of those cars will survive, but that is what happens now, by a natural process for non-specialist cars. Only a fraction of the Morris Minors built have survived, but there was no process of selection other than a sort of natural selection. As a consequence the well looked after ones have survived and having made it through, are now unlikely to ever be scrapped. Fortunately there is no shortage of Morris Minors. Even Austin Allegros have even survived, Heaven help us! The specialist cars are always much more likely to survive because enthusiasts take such an interest in them.

I don't think anybody is thinking of MGV8s as an environmental threat - it is only 17 to 18 year old bangers that should be targeted by the suggested scheme. Let's just hope any scrapping incentive is not introduced on a "use it or lose it" basis. (1.12.08)

Lead article in the January 2009 issue of Classic Car Mart

Editor Keith Moody says in his leader "This month, Classic Car Mart launches a campaign to save our modern classics. It follows news that the Government is looking at ways to offer drivers incentives to scrap older cars.

The RAC Foundation has added its weight to the "cash for cars" policy, suggesting the move ". . . could achieve environmental benefits". With other European countries already sporting similar schemes, pressure is mounting on the UK to follow suit. Such a scheme would target cars between 17 and 18 years old, many of which don't have a catalytic converter.

As classic owners, we all know that the impact of ours cars on the environment is tiny. There might be 400,000 roadworthy historic vehicles in the UK, but they make up only 1.3 per cent of vehicles on the road. Would forcing these cars off the road have any significant impact on the country's carbon-dioxide emissions? Of course not. Furthermore, taking these cars off the road would have negative economic consequences. Old cars constantly need new parts and maintenance work - take them away and that's a decent wedge of cash that will disappear . . . . as well as jobs and livelihoods. Research shows that classic car businesses earn £3.2 billion a year, with 27,000 people in the UK earning a classic car -related living. There's no doubt that a large percentage of this income is generated by 'established' classics. But if we do not keep welcoming cars to the classic fold as they reach their 25th birthday, then the future of our hobby looks bleak.

Alastair Darling's latest Pre-Budget Report at least reduced the impact of future hikes in Vehicle Excise Duty, keeping such increases at a more realistic rate than originally planned. But we still believe the Government may bow to pressure and offer incentives to remove modern classics from our roads in the future.

If you feel as strongly about the future of modern classics as we do, please go online and sign our petition. Just visit: www.ipetitions.com/petition/saveourclassics
Send this link to as many people as you know because, together, we can make a difference.
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Further reading on this news topic


18 years old - and off the road?
A scheme to encourage the scrapping of old cars to increase the rate at which motorists trade them for newer, more fuel-efficient models, could achieve environmental benefits according to the RAC Foundation.
The "cash for old cars" idea seems to have come from a House of Commons select committee - the Environmental Audit Committee's report on VED as an environmental tax. See para 38 reproduced below. More
Recent research prepared for the Royal Automobile Club Foundation by David Leibling. More

See a press release from RAC Motoring Services 21.11.08. More
Royal Automobile Club Foundation survey on ownership with some very useful statistics and projections plus some information on when cars are typically scrapped in the UK. More
Please note: the Royal Automobile Club Foundation is an independent charitable trust think tank
that is entirely separate from RAC Motoring Services.
Vehicle Excise Duty as an environmental tax
Extract from Clause 38 of the Environmental Audit Committee report

38. The rebanding of existing cars could make it harder for some owners of high emissions vehicles to afford to buy a greener replacement given that it might help to depress the second-hand value of such vehicles, while bolstering the value of more efficient models. Even where it would clearly be in someone's long-term financial interests to trade in their car for a more efficient model, it may be difficult for them, especially in current economic circumstances, to obtain the cash or credit to do so. Where the money could be obtained, the upfront cost may still deter people from buying a greener replacement vehicle, given the well-known psychological weight given to short-term expenditure over long-term savings. For these reasons, we recommend that the Treasury urgently reviews and consults on how lower income households could be economically supported to trade in their cars for low emission replacements. In particular, we recommend that the Treasury urgently examines the proposal for a "car scrappage scheme", which would provide payments in return for taking high emission cars off the road. In any scheme that were implemented, it would be important to ensure that high emission vehicles were genuinely scrapped-with as much of their materials recycled as possible-rather than allowed to stay on the road under different ownership, for instance in another country.
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net