Scrappage Scheme Extended until February 2010

The Government has confirmed that the scrappage scheme is to be extended with more money available to car and van buyers, and an amendment in the criteria meaning that more vehicles will qualify for the scheme.

Lord Mandelson, Business Secretary announced that an additional £100 million has been put into the scheme, allowing it to fund the purchase of a further 100,000 vehicles.  So far, the scrappage scheme has been a huge success, with 227,750 orders being placed for new cars using the initial Government budget of £300m, and now under the new guidelines, van owners are offered to trade their old commercial vehicle if it is more than 8 years old, instead of the previous 10 years.

More cars are to qualify under the new scheme and will therefore be eligible for scrappage.  The age of eligible cars will be extended by six months, so that any car registered on or before 29^th February, 2000 (“V” reg) will qualify.  This also applies to vans of more than eight years old (registered on or before 28^th February 2002).

As before, the Government will give the car buyer half of the £2000 grant, with car manufacturers providing the other half. The scheme will run until either the end of February 2010, or when the new budget of £400m runs out, whichever comes first.

By leasing your next car, you will completely avoid all of the risks or car purchasing.