Scrappage scheme to be extended
28 September 2009
It's official: the government's scrappage scheme is going to extended.
Government funding has been increased by £100m - that's enough to prolong the scheme by a further ten weeks.
The minimum age for eligible cars has been reduced to nine and a half years.
If the average rate of 10,430 sales per week continues, the government's popular 'cash for bangers' program will run until early 2010.
In the third week of September, 12,003 cars were scrapped by drivers in exchange for new cars.
Could you get £2,000 off a new car? Find out on Auto Trader's scrappage site
A number of organisations had called for an extension of the scheme, including:
• Auto Trader
• The Society of Motor Manufacturers and Traders (SMMT)
• Engineering Employees Foundation
• RMI National Franchised Dealers Association (NFDA)
• A number of car makers
View some of the cars scrapped so far:
The scrappage scheme offers buyers £2,000 towards the price of a new car in exchange for a vehicle over nine and a half years old. This means eligible cars must have been registered on or before February 29, 2000.
Van owners will be able to trade in an eight-year-old van in exchange for a new one.
Business Secretary Lord Mandelson said: "The car sector has been strongly affected by the recession, but the scrappage scheme has delivered a boost to manufacturers and the supply chain.
"We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400m."
Auto Trader marketing director Matt Thompson said: "We welcome the scrappage extension and I think the government deserves a great deal of applause for creating it in the first place.
"The scrappage scheme is good for the economy, the environment and all parts of the motoring industry."
The scheme will end on February 28, 2010 or when 400,000 cars have been bought under the scheme - whichever is first. The current amount of cars sold stands at 227,750.
For more information about how the scrappage scheme works, read Auto Trader's complete scrappage guide.
View a video review of the Ford Fiesta, 2009's most popular new car:
What do you think of the extension? Have your say on the Auto Trader Blog
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