4 February 2010
Scottish car buyers will have an extra month to use the popular Government Car Scrappage Scheme Jim Murphy said today as the UK Government announced an extension to the deadline. The change was announced following requests from car manufacturers for more time to prepare dealers and inform consumers. The scheme which was due to end in February, will now run until the end of March or until the money runs out, whichever is the sooner.
Jim Murphy said:
"The scheme has been very successful in Scotland. Despite the tough economic climate the scrappage scheme has been used to buy almost 100 cars every day in Scotland since it was introduced in May. More than 20,000 cars in Scotland. That is remarkable."
"If you are thinking of buying a new car, now would be the time do it to ensure you get the £2,000 discount for trading in your old car."
Business Secretary Lord Mandelson said:
"Against the background of the economic downturn the Scrappage Scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.
"If you're considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited."
In the final stages of the Scrappage Scheme manufacturers will be apportioned order quotas to aid an orderly close down.
Latest figures released by The Society of Motor Manufacturers and Traders (SMMT) showed that new car registrations rose by 29.8 per cent in January and that the scrappage scheme accounted has accounted for 17.8 per cent of January sales.
Paul Everitt, SMMT chief executive said:
"The 29.8% increase in January new car registrations provides a better than expected start to 2010 for the UK motor industry. Scrappage continues to lift demand successfully and today's announcement of a continuation of the scheme to the end of March will allow the maximum number of people to benefit from the budget that's still available.
"Industry expects another difficult year with the availability of finance, consumer confidence and sustaining demand post-scrappage, key to performance in the second half of the year, but signs of recovery in the fleet and business sectors are encouraging."