The BVRLA and the FLA have outlined a set of principles upon which they believe any new scrappage scheme should be based.
Following the announcement that the Government is planning to introduce a £6,000 incentive for anyone looking to swap their petrol or diesel car for and electric vehicle (EV), the two trade associations have written to HM Treasury, the Department for Transport and BEIS.
Representing the rental, leasing and finance sectors, the BVRLA and FLA are urging 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 said: “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.”
The ten principles outlined by the two associations are:
- Act quickly
- Be bold
- Prioritise new and used EVs
- Don’t forget about air quality
- Support fleet and private buyers
- Make a difference where it matters
- Drive transport behaviour change
- Be purchase-channel agnostic
- Work with all financing models
- Think long-term
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.
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.”
Jon Lawes, MD of Hitachi Capital Vehicle Solutions, added: “A car scrappage scheme could prove to be a tipping point in incentivising consumers to switch to electric vehicles (EVs). Environmental concerns have been driving demand for EVs, with a 21% increase in sales last month.
“Our own research showed that over quarter of consumers are now considering purchasing an EV after lockdown, with a further 40% of workers considering greener modes of commuting, so demand is definitely there to drive a Green revolution.”