We’re on final lap
THE Government today sounded “last orders” for the ‘cash for bangers’ scheme which has boosted the motor trade on Teesside.
Auto dealers across the Tees Valley have seen sales rise up to 40% due to the phenomenal success of the scheme, which offers a £2,000 discount on new models.
But the £400m Government fund for the initiative 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: “This is last orders for the scrappage scheme. Car owners need to move quickly to avoid disappointment if they want to buy a new car at a discount.
“Industry figures have shown 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.”
A total of 37 firms have signed up to take part in the final phase of the scheme and will be given an allocation of remaining potential orders based on consumer demand.
The £2,000 grant for trading in an old model for a new car is made up of £1,000 from the Government, with matched funding from vehicle manufacturers.
