Final phase of car scrappage scheme rolls out

The car scrappage scheme that offers drivers discounts on new car purchases is now in its final phase.

The government has called 'last orders' on the scrappage scheme, which offered a £2,000 discount to drivers buying new car models in an attempt to improve the prospects of the car industry.

According to the Press Association, Business Secretary 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 initiative saw the government provide a £400 million fund - this is projected to run out by the end of March and will not be extended. Funding was also provided by vehicle manufacturers and cost of the £2,000 grant is split equally between the government and the manufacturer.

Car drivers taking advantage of the scrappage scheme are advised to check car insurance quotes and compare car insurance deals as the change of an old car to a new can impact their car insurance premiums.

Since the launch of the scheme in April 2009, there have been more than 355,000 orders for new cars and vans. Shares for a further 50,000 potential sales have been allocated to the 37 motor firms taking part to ensure the scheme comes to a close smoothly. Remaining orders will be split between the forms depending on customer demand.

Wed, 24 Feb 2010 08:36:00 GMT