When the government launched their car scrapping scheme last year it did so as a way to boost the economy. The idea was that by offering money for used cars it would encourage people to buy new cars and thus boost one of the struggling industries of the United Kingdom. The jury is still out as to whether this actually worked, as the United Kingdom remains mired in a recession. However, some reports are showing that even though the car scrapping scheme may not have increased the number of new cars by much it did provide a boost to an industry that was not expected. UK Metal Recycling Limited said that while the scheme was launched to boost sales of new cars it might have had an even greater impact on the scrap metal industry, which has enjoyed strong numbers over the last few months.
The metal recycling company says that they have seen a marked in increase in turnover since the government’s car scrapping scheme was launched at the beginning of last year. Part of the scheme demands that when cars over ten years old are turned in they cannot be resold by a dealer but must be scrapped at an authorized treatment facility. This serves the dual purpose of increasing the amount of scrap metal and also removes a car from the road which will likely be replaced with a new one or at least a newer model.
This has resulted in scrap metal once again being a good investment, which has led to more people getting involved in the industry.
|
|
