Currently reading: Scrappage cash running out
Almost half UK government's money is used in two months

Almost half of the money set aside for the UK’s scrappage scheme by the government has been used up, it has been confirmed.

By the end of last week, 121,737 orders had been placed at dealerships under the scrappage scheme. The government has put aside £300 million for the process, allowing each of the maximum of 300,000 customers taking part to receive a £1000 grant.

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The scheme is planned to end in March 2010 or until the money runs out, whichever comes first. With more than £120 million of the cash used up within the first two months, though, the scheme may not even last into 2010.

A Society of Motor Manufacturers and Traders spokesman said, “The government has made it clear that no more will be made available for the scrappage discount. The idea was to kick-start the car industry and the scrappage scheme has certainly done that. However, there is only a finite amount of money available.

“We would advise potential new car buyers considering taking advantage of the scrappage scheme, to start the process as soon as they can.”

The Hyundai i10 has been the biggest seller in the scrappage scheme so far; it has shifted more than 10,000 units, one in 12 of the total scrappage sales.

Hyundai i10 orders top 10,000

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