Car scrappage scheme extended for a month

The UK car scrappage scheme has again been extended. It will now run until the end of March.

The Government announced the car scrappage scheme last May to help the car industry. Under it, when buying a new car, drivers of vehicles at least 10 years old get £2,000 off the price of the new car.

Whilst the scheme is being extended no new money is being added to the £400 million pot already announced.

Lord Mandelson, the Business Secretary, 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.”

Under the scheme, some 330,000 cars have so far been ordered meaning with the extension a further 70,000 can still benefit from it.

Car insurance is well worth checking if you do want to take advantage of the car scrappage scheme. If you buy a new car, replacing one that’s 10 years old or more, it’s likely that your insurance premiums will rise.

Also, with an old car you may have opted for just Third Party cover, meaning if you had an accident that was your fault the insurance would only cover the cost of repairs to the other vehicle. This being the case with an older car is a very different situation than with a brand new one.

Other scrappage schemes

Also running at the moment is the boiler scrappage scheme. This is designed to encourage people to replace their old boilers with a new, more energy efficient A rated boiler, by offering them a £400 cash incentive towards the cost.

There is also growing talk of a radio scrappage scheme to help with the replacement of analogue with digital radios, ready for the switch over to only digital radio in 2015.