Car Scrappage scheme is extended from today

The car scrappage scheme is being extended from today as the Government continues to stimulate demand for the car industry.

The Government is pumping another £100 million into the car scrappage scheme so that it can be extended until the end of February 2010, or until the money available to the scheme runs out.

This brings the total fund for the scheme up to £400 million, covering 400,000 cars in total.

Some of the rules for the scheme have been relaxed, following advice received from the car industry.

For example van owners looking to trade in their vehicles will now be able to scrap their 8-year-old van instead of the previous 10-year requirement.

Also the age qualification for car owners now extends the benefits to cars registered on or before 29 February 2000 (V registration).

Commenting on the extension of this successful scheme, Lord Mandelson, Business Secretary said:

“Consumers and businesses looking for a new vehicle should make the most of the scrappage scheme now. With the new terms, the Government’s scrappage scheme makes it accessible to even more consumers, but it has to end when the funding runs out.”

“Industry figures show that the scrappage scheme is continuing to boost the market. The automotive sector is a cornerstone of British manufacturing. That is why the Government plans to extend this successful scheme with an extra £100 million of funding.”

The car scrappage scheme is one of a number of initiatives, such as the Cycle to Work scheme, designed to help the environment as well as the economy.