March Deadline For Scrappage Scheme

• News
• Published: 04 Feb 2010 in Motoring and Car Insurance

Drivers looking to take advantage of the car scrappage scheme have been granted an extension until the end of March to trade in their old car, the Government has announced.

The scheme was due to draw to a close at the end of February, yet the strong surge in new-car sales over the past year as a result of the initiative has prompted the business secretary to extend the programme until the end of next month or until the £400 million put aside for new car buyers is used up.

Under Government rules, a maximum of 400,000 vehicles can be scrapped in exchange for a discount.

So far, 330,000 new cars have been bought under the programme, leaving 70,000 drivers still eligible to trade in any car over 10 years old for a £2,000 discount.

Lord Mandelson said of the extension: "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."

Analysts believe the car-sale figures for February will show a slight improvement on the 111,000 sales of new cars last month.