Government car scrappage scheme ending

Feb 24 2010 by Iain Laing, The Journal

THE Government has sounded last orders for the car scrappage scheme as the offer of a £2,000 discount on new models entered its final phase.

The £400m fund provided by the Government will run out by the end of March, with ministers making it clear it will not be extended.

More than 355,000 orders for new cars and vans have been made since the scheme was launched in the Budget last April and motor firms have been allocated “shares” for 50,000 potential further sales to help ensure a smooth closing of the scheme. Business Secretary Lord Mandelson said: “Industry figures have showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976.”

Some 37 firms hope to take part in the final phase of the scheme and will be given an allocation of remaining potential orders based on consumer demand.