No extra funds put into scheme; deadline for its expiry extended by 30 days
4 February 2010

The UK's scrappage scheme will be extended until the end of March, the government has confirmed

The government had previously set aside £400 million towards the scheme and it was due to run when all the money had been spent or at the end of February, whichever came first.

But not all the scrappage money will be spent by the end of February. In order to stop it remaining unspent, the Department for Business, Innovation and Skills (BIS) has moved the deadline by 30 days, to the end of March.

Lord Mandelson, the Business Secretary, 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.”

Since July 2009, year-on-year new car sales in the UK have been up every month, halting 15 consecutive months of decline. Around a quarter of a million new cars were registered under the scheme last year, out of 1.95m total sales.

November’s and December’s sales were among the strongest seen in 2009, as figures were up on 2008’s levels by 57.6 per cent and 38.9 per cent respectively. January’s sales, set to be revealed tomorrow, are expected to show further growth.

Late last year, BIS told Autocar that there would be no more extensions to the scheme, despite concerns that its withdrawal would lead to a fresh slump in new car sales.

Germany was the most lucrative market for scrappage last year, but sales have been on the slide since it ended in September. Sales last month were at the lowest level since reunification in 1990.

France, Italy and Spain, where scrappage incentive schemes are all still in place, all saw sales rise last month. But Fiat CEO Sergio Marchionne has long since warned that European sales would fall drastically should schemes be suddenly pulled from markets.

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Comments
13

3 February 2010

Shame on them. The sooner this scheme comes to an end the better. But i guess with an election comming should we be suprised? I doubt the fall in the April new car sales figures will be released until after our May election.

3 February 2010

FFS, when the scheme first came out they said it wouldn't get extended, but it did, and now they are saying they are going to extend it again!?!?!? What a stupid government we have in this country.

3 February 2010

This government must stop wasting borrowed money now !! The money from scrapage just flows to Korea and the like

3 February 2010

The absolute hypocritical nonsense of having a government that taxes the motorist to buggery largely based on flawed climate science but expends taxpayers' money on getting people to scrap cars with MOTs for new ones. Surely people should be encouraged to keep old cars and maintain them rather than bringing new ones into the world?

3 February 2010

[quote John McToon]The absolute hypocritical nonsense of having a government that taxes the motorist to buggery largely based on flawed climate science but expends taxpayers' money on getting people to scrap cars with MOTs for new ones[/quote] If only people knew the truth of what its really all about, you would be shocked. In fact you would call the person who told you a lair. This is all about keeping this country in a state of bankruptcy, we have been bankrupt since 1949 and at the end of 2009 we would have come out of that bankruptcy under international bankruptcy law. This is why the banks nearly failed and this is why the government bailed them out and this is why we are accumulating debt at a million pounds a minute, just to keep us in a state of bankruptcy. IF this country had been released from bankruptcy everything would be very different right now so steps were taken to ensure things stayed the same. If you can be bothered go check it out. Just remember everything you know is wrong.

R32

3 February 2010

I've read the above comments and agree with them all (except the one "qpgkx" immediately above) - but would ask why the government should stop scrappage? I mean, if the figures that have been banded about are to be believed, the treasury is doing quite nicely out of the scrappage scheme..... particularly with the VAT on new cars, etc.

What a sorry state this country is in - time for a change in governement I think.

3 February 2010

[quote John McToon]Surely people should be encouraged to keep old cars and maintain them rather than bringing new ones into the world?
[/quote]

You would think, wouldnt you. What you are suggesting here though makes absolute common sense, both in terms of the economy, and the environment. Clearly you would have no place in the current Socialist (sorry, Labour) government.

Lets carry on printing money & worry about the problem later!!! It seems we have more to learn from Zimbabwe than we thought!!!

currently a happy owner of a Mitsubishi Shogun Pinin :)

3 February 2010

If everyone keeps their old cars and no-one buys new ones...because they dont 'need' them, well, we all know how that would end.

scrappage whilst questionable ethically, has undoubtedly kept local car factories in business.

it will def help massage 1st quarter growth figures to have march added to the scheme..so political decision undoubtedly.

3 February 2010

[quote Autocar]The UK's scrappage scheme will be extended until the end of March, Autocar has learned.
[/quote]

Hyundai must be delighted.

3 February 2010

[quote keeforelli]

If everyone keeps their old cars and no-one buys new ones...because they dont 'need' them, well, we all know how that would end.

scrappage whilst questionable ethically, has undoubtedly kept local car factories in business.

[/quote]

Local if you live in Korea!!!

Running older cars benefits our UK economy as well as the environment. I used to run an ancient Mercedes 190. It was completely worthless, I paid £400 for it, so in our government eyes it was fit for the scrapheap, but because I loved it so much, (yes more than a Rover even!) I maintained it at my local garage, & ran it, even when it was worth far far less than £2000. By doing this I was one more customer keeping my local garage afloat, & I prevented another new car from being built unneccesarily.

For this reason I think all of my tax money would have been better spent on reintroducing a rolling road tax cutoff date of 25 years, or even changing it to 20 years, to encourage people to run older cars. The scrappage scheme just encourages a "throwaway" society that is absolutely at odds with the environmental aims of the scheme. Its an absolute farce at best. We are scrapping roadworthy cars with at least 5-10 years life left in them, just to allegedly stimulate our economy, which doesnt even make sense because this £2000 will come out of my tax money eventually!

Yet another example of our stupid socialist (sorry Labour) government trying to win votes ahead of common sense & economic good sense.

currently a happy owner of a Mitsubishi Shogun Pinin :)

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