Scrappage scheme could be over and out by August
The recently launched new car and van scrappage scheme could itself be scrapped by August – six months earlier than scheduled because the money will run out.
So many vehicle owners are said to be taking advantage of the £2,000 discount on new vehicles – funded equally between vehicle manufacturers and the Government, which has put up £300 million – that funds will run out long before the scheduled end of the scheme on February 28 next year.
Figures show that 35,000 new vehicles were bought under the plan in two weeks. At that rate, it is calculated, that the Government funding for the initiative will run out by August 20.
The Daily Mail says that if the cash-for-scrap money does run out in August it will prove to be a further blow for the car industry.
September is a key new vehicle sales month due to the registration plate change. As a result, without the extra incentive of the scrappage scheme, sales could fall again.
Sue Robinson, of the Retail Motor Industry Federation, said that the high take-up of the scheme so far may simply be an ‘initial rush’ with sales likely to level out.
The Department for Business, Enterprise and Regulatory Reform, which is funding the programme, says there are no plans to extend the scheme when the budget runs out.
Sorce: Autowired ¦ Daily Mail
The Motor Trade Insider Guide To Buying New Cars
- The final phase of the Government’s scrappage scheme began yesterday (Wednesday 24th February). Car manufacturers have been allocated shares of [...]...
- The BBC has reported that the UK car scrappage scheme is to be extended for a further month. It was [...]...
- Motor manufacturers are to have a quota system imposed by the Government for the remainder of the scrappage scheme after [...]...
- The Society of Motor Manufacturers and Traders has written to business secretary Lord Mandelson urging government to extend the successful [...]...
- Trade guide Glass’s are warning car sales will collapse if the government doesn’t extend the scrappage scheme at least until [...]...
- Retail Motor Industry Federation director Sue Robinson is to meet ministers on February 24 to discuss the possible launch of [...]...
According to recent research used car buyers are most likely to buy a blue or black 5 door hatchback which is 3 years or older. Does that sound like you? 
![[Valid RSS]](http://www.motor-trade-insider.com/images/valid-rss.png "Validate my RSS feed")
Of course this is great news but despite a perfect credit rating, my application for finance was still declined because I am self employed and I do not have 3 years full accounts.
I really wanted a new car but quite frankly I am gutted by this.
Andy