Scrappage scheme nears end

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Scrappage scheme nears end

The final phase of the Government’s scrappage scheme began on February 24, said Business Secretary Peter Mandelson today, reminding would-be car buyers to take advantage of the scheme before it closes. There are now less than 50,000 potential further orders left.

As part of the exit phase the Department of Business has allocated potential order quotas to manufacturers based on brand popularity. This quota allocation process will help ensure a smooth closing of the scheme.

Lord Mandelson, Business Secretary 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 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."

The UK scheme, with up to £400m from Government and matched funding from manufacturers, is intended to provide a short term boost to industry and stimulate consumer demand during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.

Source: Auto Industry

The Car-Scrapyards team.