Scrappage extended

By Sam Hardy

04th February 2010

It's the news that buyers have been desperate to hear – the scrappage scheme will be extended until the end of March.

Because not all of the £400 million set aside by the government for the scheme will be spent by the end of February, the deadline has been moved 30 days to March.

“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," Lord Mandelson, the Business Secretary said.

“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,” he added.

Since its arrival in July last year, new car sales in the UK have risen dramatically with around a 250,000 new cars registered under the scheme in 2009 from 1.95m total sales. It has proved a big hit for Hyundai and Kia in particular who have seen a huge sales boost.
 

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