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Government scrappage scheme to enter exit phase

24th February 2010 Print

The final phase of the Government's scrappage scheme has begun today (Wednesday 24th February), said Business Secretary Peter Mandelson today, reminding would-be car buyers to take advantage of the scheme before it closes.

Car manufacturers have now been allocated shares of about 50,000 potential further orders based on brand popularity by the Department for Business, to help ensure a smooth closing of the scheme.

Lord Mandelson, Business Secretary said: "This is last orders for the scrappage scheme. Car owners need to move quickly to avoid disappointment if they want to buy a new car at a discount.

"Industry figures have showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976."

The UK scheme, with up to £400m from Government and matched funding from manufacturers, is intended to provide a short term boost to industry and drive consumer demand 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.

Scrappage exit phase - What you need to know

1. When will the exit phase end?

The exit phase will end when the budget for the Government's scrappage scheme runs out or at midnight on Wednesday, 31st March 2010, whichever is the sooner.

2. How will the quota system work?

Each participating manufacturer will be given an allocation of remaining potential orders based on consumer demand. This will give manufacturers and consumers certainty as to how many potential scrappage orders are available to them. For information on quota availability at the manufacturer of your car of choice you can contact your local dealer.

3. What brands are included?

37 manufacturers have signed up to take part in the final phase of the Government scrappage scheme: Allied Vehicles, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco Ltd, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks UK Ltd, SAAB, SECMA UK, SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen & Volvo.

The scheme applies to commercial vans (up to 3.5 tonnes) as well as cars.

4. Will I be able to get the car I want?

In this final stage of the scheme there are strict order limits on manufacturers. To avoid disappointment consumers are urged to place their orders quickly, particularly if they have a specific car in mind. However there will be a small further allocation towards the end of the scheme for those manufacturers that have proved particularly popular with consumers. It is likely that your dealer will be keeping a waiting list for these.

5. What if I miss out?

This Government scrappage scheme will not be extended. However a number of manufacturers have already announced they plan to offer good deals to customers which will continue beyond the scrappage scheme

Notes to editors

1. By 14th February, BIS had received 355,305 orders for new vehicles under the scrappage scheme since it was announced in the Budget in April.

2. Under the final stages of the scrappage scheme manufacturers will be apportioned potential order quotas to aid an orderly close down of the scheme by giving manufacturers certainty as to how many potential scrappage orders are available to them.

3. The quota system will be based on brand popularity and will help ensure a smooth closing of the scheme.

4. Changes made to the scheme in September meant:

Vans (up to 3.5 tonnes) registered before February 2002 and;
V registration cars were brought under the eligibility criteria for the scheme.

5. After listening to the needs of the industry, Government provided an additional £100 million of funding for the scrappage scheme. This was approved in October and the Scheme now will cover up to 400,000 transactions.

6. The scrappage scheme figures are updated on a weekly basis, with all available statistics on the BIS website: