Scrappage scheme passes halfway point
Over 155,000 scrappage orders have been placed since the scheme launched in May, meaning that more than half of the government's £300 million funding has already been used up.
The September plate change could fuel another surge in customer orders, which may cause the scheme's funding to run out before the end of the year.
Lord Mandelson, Secretary of State for Business, said: "I'm pleased that we have already achieved over 150,000 new car orders. This is a great deal for manufacturers and dealers, not to mention the customers. The scheme has contributed to the 13.5 per cent jump in car manufacturing and the first growth in new car registrations since April 2008."
New cars that have been bought under the scrappage scheme emit, on average, 25 per cent less CO2 than the cars that are being scrapped. The average CO2 figure for scrapped cars is estimated to be at least 179g/km, compared to a much lower average of 133.9g/km emissions for cars bought through the scheme.
Car owners in the south east have been quick to take advantage of the scheme, placing 18 per cent of the total orders received so far.
The Sun picks Leon as top scrappage deal
On 14 August, The Sun's motoring section picked the "good-looking" Leon 1.6-litre Emocion - which is available from just £9,990 - as one of its best scrappage buys. The feature was accompanied on the following page by our ‘Kerching' scrappage plus advert.
Scrappage scheme extended by £100M
The government yesterday (28 September 2009) announced a £100M increase to the vehicle scrappage scheme.
So far 227,750 orders have been placed through the scheme. The increased funding enables the scheme to fund a further 100,000 vehicles, bringing the total budget to £400 million and covering up to 400,000 vehicles. The extension continues as a government and manufacturer partnership, with matched funding providing the £2,000 discount for each scrappage order.
Alongside the increased funding the government will work with manufacturers to extend the benefits to van owners with vehicles over eight years old rather than the current 10-year requirement.
Car owners will also get a boost, with the age qualification changed by six months to extend the benefits to cars registered on or before 29 February 2000 (V registration). The scheme will come to an end in February 2010 or when the funding runs out, whichever is sooner.
Business Secretary Lord Mandelson said: "The sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400m. "But we must make sure that the help we do offer is targeted, limited and proportionate. This is not a blank cheque to the auto manufacturers but recognition that there is still a short-term challenge to boost demand and confidence in the sector."
In summary :
The Scheme will now cover up to 400,000 orders and will come to an end on 28 February 2010 or when the funding runs out, whichever is the sooner
To ensure all 10-year-old cars will qualify for the scheme, the date by which vehicles must have been registered in the UK will be changed to 28 February 2000 (V registration) except in the case of vans where the date will be changed to 28 February 2002 (Y registration or earlier, or new-style number plates where the 3rd and 4th digits of the registration number are 51).
The government will work with manufacturers to implement these changes, and these will come into effect as soon as possible.
The scrappage scheme figures are updated on a weekly basis on the BIS website where you can also find more information about the changes to the scheme.