Car scrappage scheme boosts business for UK Metals

The introduction of the government’s scrappage scheme has had a greater effect on the economy than just stimulating the sale of new cars, according to UK Metal Recycling Limited. The Wiltshire based scrap metal and recycling company has seen a marked increase in turnover in the last year directly as a result of the new scheme.

When car owners agree to trade their 10 year old car for a new vehicle under the scrappage scheme, the dealer cannot resell the trade in car as second hand, but must dispose of it through an Authorised Treatment Facility (ATF), who issue a Certificate of Destruction. To minimize overheads, most main dealers will contract an ATF to collect and dispose of the old cars

"Scrap cars have a greater intrinsic worth than just the scrap metal value." said Jonathan Tarr of UK Metals. "Most of the cars we get under the scheme are roadworthy, so while the shell is scrapped, many of the engine components, interior fittings or electrics can be resold for parts. In some cases, the scrap value is greater than the second hand trade value, so the new scheme is a welcome addition to our business."

The potential profit from the increased number of cars being scrapped under the scheme is such that a specialist recovery vehicle has become a worthwhile investment. UK Metals recently bought a 7.5 tonne slide bed truck from Recovery World in Hatfield to cope with the increased demand for collecting scrap vehicles, and they are planning to buy a twin deck truck to add to the fleet.

Lynn Engledew, managing director of Recovery World commented, "UK Metals is not unique. We have sold quite a few of our recovery vehicles to scrap metals dealers since the government introduced the scheme. Initially it was for single deck vehicles, but with the success of the scheme, we are now selling more twin decks so dealers can halve the costs of collection, and make it even more profitable."

Originally planned to end in February, Lord Mandelson recently announced a further allocation of £100 million to extend the scrappage scheme to cover 100,000 more cars and vans.
ends

More about Recovery World
Recovery World was established in January 2001 to supply both new & used vehicles to the UK & Europe. With now over 150 vehicles on site at any one time Recovery World holds the largest collection of recovery vehicles in Europe, if not the world. The Recovery World website has become a community focus for all those involved in the vehicle recovery industry, not just for vehicle sales, but a central information point. The forum is very active with drivers and operators able to air their views and opinions and maintain contact with each other. Recovery World has recently expanded the operation to become a leading supplier of specialist recovery accessories via their on-line shop and mobile service.

For further media information contact
Colin Caldicott, Ultimedia PR Tel: 01767 601470 or colin@ultimediapr.co.uk

For further information about Recovery World contact
Lynn Engledew Tel: 01707 266318 or lynn@recoveryworld.co.uk.