Scrappage Scheme Enters Exit Phase

24 February sees the popular UK government/OEM scrappage scheme enter its final phase. 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. In a statement business secretary Peter Mandelson reminded would-be car buyers to take advantage of the scheme before it closes.

The scrappage scheme will end when the budget for runs out or at midnight on Wednesday 31 March 2010, whichever is the sooner. According to the Department for Business, the government scrappage scheme will not be extended. But that won’t stop a number of manufacturers offering good deals to customers outside of the “official” scheme.

Lord Mandelson 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 £400 million 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.