Scrappage scheme 'may not have caused car sales to rise'

If growing numbers of people in the UK are searching for cheap car insurance after buying new autos, it may not necessarily be the result of the scrappage scheme, it has been suggested.

According to the Association of British Drivers, recent figures - that show the decline in vehicle registrations last month was the smallest since July 2008 - might not be an indication the cash for bangers initiative is working.

Spokesman Hugh Bladon said: "It may be something to do with that, but it may also be something to do with people recovering a bit from the financial situation."

He stated he was unsure that £2,000 would be enough to make a motorist buy a brand new car.

Mr Bladon also claimed getting rid of perfectly usable autos also seems a bit wasteful and suggested such vehicles should be donated to worthy causes.

However, people who do decide to take advantage of the government's scrappage scheme in order to save money may find they can reduce their outgoings even further by searching for cheap car insurance online.

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