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Car scrappage scheme extended

Scrappage scheme given one extra month

Car scrappage

Car scrappage scheme has been extended until end of March

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The government has announced that the scheme will be extended for one month.

The deal, which gives buyers a £2,000 discount when they trade in a 10-year-old car, was set to end in February.

The government will not provide any additional funding, but says it has extended the deadline to the end of March to give manufacturers and dealers ‘more time to prepare for and operate the exit phase of the scheme’.

Car scrappage sales

Half of the subsidy that makes up the car scrappage scheme is funded by government and the other half by the car maker.

More than 330,000 new vehicles have been ordered under the scheme since it was announced in the government’s budget last April.

Business Secretary Lord Mandelson said: ‘Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain manufacture at a time when this sector needed it most.’

The Society of Motor Manufacturers and Traders says the scheme has accounted for a fifth of new car sales since it was introduced, but warns of a tough year after it ends.

Some manufacturers, including Hyundai and Toyota, are planning their own versions of the scrappage deal for when the government scheme ends.


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