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Scrappage Scheme Extended

The government has announced further funding for the scrappage scheme.

The government has announced a further £100 million funding for the scrappage scheme. The £300 million originally attributed to the scheme has all but run out with the new 59 plate rush fuelling extra registrations of small, cheap to run cars.

The rules of the scheme will be unchanged except for the date of first registration in the UK. The registration date for cars will change to 29 February 2000 or before, while for vans it will change to 28 February 2002 or before.

Kevin Gaskell, chairman of commented on the extension of the car Scrappage scheme,
"Since the Scrappage scheme launched, around 850,000 vulnerable UK jobs have been secured. The entire UK economy has benefited, from consumers to the car manufacturers. By extending the scheme, the government has demonstrated a commitment to the car industry in the UK.

"Over 100,000 new cars have registered to the scheme, and a further 100,000 are awaiting order. Surprisingly, 70 per cent of the cars bought under the Scrappage scheme were as a result of additional sales which wouldn’t have happened in 2009 if it weren’t for the scheme. Statistics provided by, the UK’s fastest growing motoring site, have shown over half a million searches for cars eligible under the scrappage scheme alone – with the small, economical Kia Picanto coming out as the favourite."

In summary, the car Scrappage scheme is good news for everyone involved:
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.

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