AA Loans welcomes government proposal

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AA Loans welcomes government proposal

AA Loans has come out in favour of a government proposal which would see the owners of older vehicles offered an incentive to trade them in for a newer car.

The scheme, which has been discussed by Lord Mandelson, would see older car owners given a £2,000 voucher towards the purchase of a new car on the condition that they scrapped their old one.

Mark Huggins, director of personal loans at AA Loans, said that the scheme would help kick-start the stalled car manufacturing industry, as well as reducing carbon emissions and improving road safety.

He added: "The proposal ticks all the right boxes. I believe it would be a popular move and would allow many families to buy their first brand new car."

A similar scheme has already been successful in Germany, where the government offers £2,245 to trade in vehicles that are more than nine years old.

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