The final phase of the Government’s scrappage scheme began yesterday (Wednesday 24th February).
Car manufacturers have been allocated shares of about 50,000 potential further orders based on brand popularity by the Department for Business, to help ensure a “smooth closing” of the scheme.
Lord Mandelson, Business Secretary 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. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976.”
The UK scheme, with up to £400m from Government and matched funding from manufacturers, is intended to provide a short term boost to industry and drive consumer demand during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.
By 14th February, BIS had received 355,305 orders for new vehicles under the scrappage scheme since it was announced in the Budget in April.