It has been reported that more than 150,000 people have bought a new car as a direct result of the Government scrappage scheme. The scheme is scheduled to last until February 2010 or until the 300 million pounds of government funding expires.
The Government is contributing 1,000 pounds per car to its scrappage scheme while the industry provides a similar amount. The £2000 incentive which asks motorist to trade in vehicles over ten years old for a discounted new car has now just passed its halfway point and is already being hailed a success. July new car sales increased by 2.4% last month which is the first monthly rise for more than a year and the credit has been given to the scheme for the sales boost.
Half of the £300 million funding for the scheme remains and the Government is delighted with the results for both the new car sales lift and the greener alternative the newer vehicles represent with 25% lower C02 emissions. Business Secretary Lord Mandelson 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.