Scrappage Scheme Extended
The successful government scrappage scheme will be extended enabling even more motorists to take advantage of the scheme.
The scheme will now include a further 100,000 cars and vans, and will now also incorporate vans aged eight years and the age for cars has been extended by another six months so it now includes those registered before 29th February 2000.
The extension was announced by business secretary Lord Mandelson at the Labour Party Conference in Brighton on 28th September and his announcement has been welcomed by the car retailing sector.
With the existing scheme, launched in May with a government fund of £300m, expected to run out of money by the end of October, manufacturers, trade bodies and dealers had all lobbied for its extension.
So Far So Good – Read more on how the Scrappage Scheme has delivered
according to figures from the Society of Motor Manufacturers and Traders (SMMT), the scheme has helped safeguard around 850,000 UK jobs and has stimulated the British economy. More than 100,000 new car purchases have been made through the scheme since it was launched whilst the favourite model of choice under the scheme has been the small, economical Kia Picanto.
Consumer motoring website motoring.co.uk say the scrappage scheme extension is good for everyone:-
1. Consumers benefit by having access to new cars at excellent prices.
2. The government benefits, as the scrappage scheme is largely self-funding through VAT payments.
3. The environment benefits because the average CO2 emissions of cars bought under the scheme in the UK is 15% lower than the pre-scrappage market average.
4. The average car scrapped under the scheme is over 12 years old with an estimated CO2 emission 30% higher than its replacement.
5. Local dealers and manufacturers benefit because this scheme has been critical in maintaining their viability.
| Top 10 Cars searched for Under the Scrappage Scheme from April to date |
| 1 |
Kia |
Picanto |
| 2 |
Fiat |
Panda |
| 3 |
Hyundai |
i10 |
| 4 |
Toyota |
Aygo |
| 5 |
VW |
Fox |
| 6 |
VW |
Polo |
| 7 |
Fiat |
Grande Punto |
| 8 |
Ford |
Fiesta |
| 9 |
Vauxuall |
Corsa |
| 10 |
Peugeot |
107 |
| Data provided by Motoring.co.uk. Correct as of 28th September 2009 |
SMMT chief executive Paul Everitt summed up the industry’s response to the extension by saying: "This is an extremely important decision that will inspire consumer and business confidence. It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable.
"The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates."
*Statistics by the SMMT