Car Scrappage Scheme Extended For One Month

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Thu, 04 Feb 2010

The government has announced the UK car scrappage scheme is to be extended for a further month.

The cash-for-bangers scheme was due to finish at the end of this month, but Business Secretary Lord Mandelson has confirmed that car buyers across the UK will continue to have access to the popular scheme until the end of March.

He said in a statement that car manufacturers and dealers had requested the extension to give them "more time to prepare for and operate the exit phase of the scheme", but added that no additional funds will be made available for the scheme.

The car scrappage scheme, which offers motorists trading in vehicles over 10 years old a £2,000 discount off the price of a new car, was introduced last May in a bid to boost car sales and revive the UK’s struggling motor industry.

Around 330,000 new vehicles have been ordered under the scheme so far, leaving room for roughly 70,000 more deals.

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."

"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."