The scrappage scheme’s deadline has been extended to the end of
March, the Department for Business, Innovation and Skills (BIS)
announced – but no more funds have been made available by the
government.
The scheme gives buyers of new cars a discount of £2,000 when
they trade in a car over 10 years old or a light van over eight
years old. It was given a funding boost of another £100 million by
the government in September, taking the scheme’s total funding to
£400 million, or up to 400,000 units.
Go deeper with GlobalData
BIS made the decision to extend the scheme from its original
end-February deadline after talking to manufacturers and dealers,
who said they needed more time to prepare for the scheme’s end.
The department said that 330,722 vehicles have been ordered
through the scheme between its introduction in April 2009 and
January 24 of this year.
According to BIS, manufacturers will be allocated “order quotas”
to help the scheme come to an “orderly” end.
Business secretary Lord Mandelson said: “Against the background
of the economic downturn the scrappage scheme has proved a great
success, driving UK car sales, protecting jobs and supporting the
supply chain for car manufacture at a time when this sector needed
it most.
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By GlobalData“If you’re considering buying a new car, you should place your
order as soon as possible to avoid disappointment, because the
budget is strictly limited.”
