Everett Group

News

30 September 2009 Government to extend car scrappage scheme

The Government has announced it will extend the UK’s vehicle scrappage scheme to enable more people to take advantage of the initiative.

Speaking at the Labour party conference, Business Secretary Lord Mandelson pledged to provide funding for an additional 100,000 cars.

Furthermore, the age qualification will be changed to allow any car registered before 29 February 2000 to qualify for the scheme. The minimum qualifying age for vans will also be cut from 10 years to eight years.

‘There are encouraging signs that the economy is picking up,’ said Lord Mandelson. ‘But recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry.’

‘This is not a blank cheque to the auto manufacturers but recognition that there is still a short term challenge to boost demand and confidence in the sector.’

Under the scheme, consumers who trade in older cars are offered up to £2,000 off the price of a new model. The initiative was originally scheduled to end in February 2010, or until the allocated funds were exhausted.

However, with the scheme proving popular amongst consumers, some trade bodies have warned that the funding could run out as early as next month.

To date approximately 227,750 cars have been purchased under the scrappage scheme.