Govt’s car scrappage scheme leads to boost in sales

Friday 29th May 2009, 11:26AM BST.

Govt's car scrappage scheme leads to boost in sales Over 35,000 new cars have been ordered since the launch of the government’s new car scrappage scheme last month, official figures show.

Under the scheme, motorists can trade their vehicle older than ten years and receive a £2,000 discount when purchasing a new car.

Half of the money is provided by the government while the other half comes from the manufacturers’ pockets.

It is claimed that up to 300,000 new vehicles can benefit from the discount, with the Society of Motor Manufacturers and Traders suggesting the scheme has begun “enticing car buyers back into the showrooms”.

Commenting on the figures, a spokesman for the Department for Business, Enterprise and Regulatory Reform said: “We are really pleased that the scheme seems to be delivering a boost so early in the scheme.”

The government hopes the scheme will boost the UK’s car industry which has suffered greatly during the economic downturn, with car sales declining for 11 successive months, triggering job losses and production cutbacks.

Vehicles up for scrapping should have been registered before July 31st 1999. The programme is similar to schemes in other major European countries like Germany and France.