Scrappage scheme enters final phase

24 February 2010

The Government has announced that the car scrappage scheme has entered its final phase.

Ministers said the £400 million government fund will run out by the end of March and the initiative, which offers a £2,000 discount for trading in an old model for a new car, will not be extended.

Under the scheme, introduced last May, more than 355,000 new cars and vans have been ordered.

In order to make sure a smooth closing of the scrappage scheme, 37 motor firms participating in its final phase have been allocated "shares" for 50,000 potential further sales.

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 showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond."

He added: "It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976."

The £2,000 discount comprises of £1,000 from the Government and an equal amount from vehicle manufacturers.

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