Graham Hill, Car Finance Expert, Exposes The Truth About Scrapped Cars

Thursday, 25. March 2010

Government figures show that up to 1 million scrapped cars are still being driven on the road. Whilst 2 million motorists told the DVLA that their cars were being destroyed only half were issued with a Certificate of Destruction, the proof that a car has been destroyed. Dodgy dismantlers have been exploiting a legislation loophole whereby the DVLA doesn’t need to see the Certificate before it registers a car as scrapped, just a copy of the logbook with the relevant box ticked by its owner. This enables the rogues to simply put the cars back on the road. The Environmental Agency estimates that the crooks are netting £millions every year by dealing in these cars. The AA added that it’s a loophole that needs to be tightened up – nice one AA, have another drink – oops, wrong AA. More than 355,000 cars were scrapped last year under the terms of the scrappage scheme. The cost of administration in the UK was just £2 million. Whilst we only scrapped £400 millions of cars compared to £4,383 millions in Germany it cost them £131.5 millions in admin costs compared to our 2 millions. This puts their admin costs at 3% of the income – similar to France and the US. Shocking or what? By Graham Hill