Carmakers have called for governments across Europe to extend the car scrappage schemes that have helped to increase new car sales, according to the BBC.
A number of major economies introduced scrappage schemes as an incentive for motorists to replace their old vehicles with brand-new ones, boosting sales for the struggling industry.
But car manufacturers are concerned that when these schemes come to an end, sales could fall once again.
An extension to the scheme would also give an extra boost to the car finance industry, which helps many people buy the new cars they may otherwise be unable to afford.
A car loans expert at Think Money said: "An extension to the car scrappage scheme would give many motorists another chance to buy a new vehicle at a lower price than they would normally have to pay.
"Of course, finding the right car loan can save the buyer a lot of money in the long run. A car loans adviser can help people find a car loan that meets their needs."
Scrappage scheme extension could increase demand for car loans
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