Car scrappage scheme nears end

Figures released today show that more than three quarters of the budget for the Government's scrappage scheme has been used up.

Funding for less than 82,000 new vehicles orders is left for car buyers to take advantage of under the scheme, as it nears its end.

As the scheme enters its final stages the Department for Business will allocate order quotas to manufacturers. The quota system will be based on brand popularity and will help ensure a smooth closing of the scheme.

Lord Mandelson, Business Secretary said: "I'm pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time. With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.

"Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes."

Van orders under the scheme have also seen a boost, following the changes made to the scheme in September, with vans registered before February 2002 now eligible. Since these changes came into effect half of all vans scrapped through the scheme were less than ten years old and there have been reports of van fleet owners upgrading their entire stock.

The regional breakdown shows that take-up of the scheme broadly follows that of regional car ownership. Scrappage has proved popular with car buyers across the UK with take-up highest in the South East (18%), the East of England (12%), the North West (11%) and South West (11%).

The UK scheme, with £400m from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.