Extension Of Vehicle Scrappage Scheme Confirmed

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Thu, 01 Oct 2009

The government has announced it is to extend its vehicle scrappage scheme, with extra funding being made available to UK motorists and more vehicles eligible for the scheme.

Business Secretary Lord Mandelson confirmed that an additional £100 million is to be invested in the scheme, allowing it to cover the purchase of a further 100,000 vehicles, in addition to the 227,750 orders for cars and vans which have been placed so far.

Car buyers will continue to receive half of the £2000 grant from the government and half from car manufacturers until February 2010, the revised end date for the scheme.

Lord Mandelson also confirmed that the age of eligible cars will be extended by six months, meaning more vehicles will qualify for scrappage .

Under the new proposals, any car registered on or before February 29, 2000 ('V' registration) will qualify for the scheme, while Vans that are more than eight years old (registered on or before February 28, 2002) will also qualify.

Commenting on the move, Lord Mandelson said: "The scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400m."

"However, we must make sure that the help we do offer is targeted, limited and proportionate," he added.

"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."

According to the Society of Motor Manufacturers, the scrappage scheme has helped boost consumer confidence, accounting for at least a quarter of new car registrations each month since its introduction last year.