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Tuesday 16th of June 2009
June 15, 2009

60,000 orders placed for UK’s car scrappage scheme


by Kay Murchie
”60,000

Government figures out today have revealed that over 60,000 orders have been placed under the UK’s car scrappage scheme.

The scheme, which was introduced last month to boost the fall in demand for new cars, pays consumers to get rid of their old cars and replace it with a more environmentally friendly car.

The £300 million initiative gives motorists £2,000 when they scrap their vehicle (which must be at least 10 years old). The Government will contribute £1,000, with the remaining £1,000 funded by car firms.

The scheme has already proved successful overseas, particularly in Germany who reported a 40% increase in new car sales for March.

The UK’s figures cover the time from which the scheme was announced at the end of April to 7 June.

Commenting on the figures, Business Secretary Lord Mandelson, said: “Consumers know a good deal when they see one. These figures speak for themselves.”

The scheme will run until March 2010 or until the Government funding runs out.

Earlier this month, the Society of Motor Manufacturers and Traders revealed that car sales in the UK fell by almost 25% in May, compared with the same month in 2008.

The number of new cars sold during May was 134,858 and represented the 13th consecutive monthly fall in UK car sales.

However, these figures did not take into account the scrappage scheme.

Meanwhile, a recent survey by the Retail Motor Industry Federation (RMIF) reported an increase in enquiries about new vehicles following the introduction of the scrappage scheme.

According to RMIF director, Sue Robinson: “Car sales should see a significant increase in the coming months as a result of the scrappage scheme. This will go a long way towards helping to revive consumer confidence and the UK car market.”

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