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1. The Directive comes from the European Parliament and is
binding on all member states, including the UK.
2. The principle behind the directive is to increase the amount
of car parts that are recycled
3. The Directive also states that all hazardous wastes from
cars such as oil, break fluid, petrol etc. are removed when the
vehicle is scraped, rather than polluting the environment.
4. By 2007, 20% of the vehicle components should be safely
disposed of and by 2015, it is intended that 85% of a vehicle
goes the same way.
5. There are costs associated with these environmental ethics,
as the current debate is based around who should reasonably be
required to pay for recycling and de-pollution
6. The Directive places the burden of picking up the tab on
manufacturers AFTER 2007 but allows Member States to decide who
should pay up until that time.
7. In the UK the Government have announced that the burden
should be placed on the last keepers of the vehicle, although
in 95% of cases these last keepers are not traceable because
they are not registered properly with the DVLA.
8. A report issued by the government in June 2002 stated that
vehicle and component manufacturers, importers, dismantlers and
reprocessors will see the greatest changes as a result of the
new directive.
9. The estimated cost of administration of the end of life
directive is between £24 million and £37 million
per year, based on an estimated cost of disposal of £60
per vehicle.
10. There is a "last owner pays" theory the
owner takes the car to the nearest licensed dismantler, they
are most likely going to have to hand over £60 owing to
rapidly diminishing scrap values.
11. The industry is already concerned about the dumping of
vehicles by owners to avoid picking up the tab for disposal.
12. Trade-in models nearing end of life will cease to retain
any value and will cost independent dealers money and the sale
of a newer vehicle in exchange for an ELV will mean eroded margins
13. Independent dealers are likely to have to accept end of
life vehicles to avoid losing potential customers, as customers
will expect a dealer to take responsibility for the disposal
of their end of life vehicle, especially if they are purchasing
a new vehicle from the dealer.
14. Arranging for the dismantling of vehicles will take much
administering by the dealer for little return and may put them
under increased pressure, both administratively and financially.
15. The high administrative costs that dealers may have to
carry will put their margins under pressure and will consequently
mean that used car values will diminish as a direct result of
the end of life Directive.
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