The government's 'cash for bangers' scrappage scheme has passed its halfway mark - with more than 150,000 cars ordered.

Drivers in south east England have been the keenest to take part in the scheme, which gives owners of ten-year-old vehicles £2,000 towards the cost of a new car.

The government has committed itself to investing £300 million in the scheme, which means half the money has gone: total purchases stood at 154,927 on August 10.

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Buyers in the South east of England have made up 18 per cent of orders under the scheme so far, followed by east of England consumers (12 per cent), drivers in north west England (11 per cent) and south west England (11 per cent).

The Department for Business, Innovation and Skills said new cars bought under the scheme have CO2 emissions which are 25 per cent lower than the cars scrapped.

The scheme has had an effect on new car sales which rose 2.4 per cent last month - the first increase in 15 months.

Business Secretary Lord Mandelson said: "I'm pleased that we have already achieved over 150,000 new car orders.

"This is a great deal for manufacturers and dealers, not to mention the customers."

Although the motor industry has welcomed the scheme there have been concerns expressed that sales could slump again when the initiative ends.

Car makers demand scrappage extension

The Government had said that the scheme would run until February 28, 2010 or until the £300 million was exhausted, which ever came first. It now seems that the scheme will come to an end much earlier than originally thought.

If the rate of sales continues, the scrappage scheme could end in October. Last week 10,619 new car orders were made under the scheme.

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