Scrappage scheme will run to end of March

An extra month has been added to the deadline for the Government Scrappage Scheme allowing manufacturers and dealers more time to prepare for and operate the exit phase of the Scheme.

This change was announced by Government following requests from car manufacturers for more time to prepare dealers and inform consumers.

Previously due to complete in February, the Scheme, which is jointly run by the Government and car manufacturers, will now run until the end of March or until the money runs out, whichever is the sooner.

Business Secretary Lord Mandelson said: "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.

"If you're considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited."

In the final stages of the Scrappage Scheme manufacturers will be apportioned order quotas to aid an orderly close down.