Scrappage scheme success

The government’s new scrappage scheme – designed to boost the flagging motor industry by incentivising the trade in of older cars – has been a massive success since it was launched in April – despite doubts voiced by the likes of Honda and Ford.

Government figures show that over 35,000 people have taken up the scheme, claiming an extra £2000 discount against the purchase of a new car in exchange for a vehicle that is ten years old or more.

In fact, many industry experts are concerned that the scheme may yet prove a victim of its own success, with around ten percent of the £300million funds set aside by the government already allocated, raising fears that the scheme could quickly run out of cash. Further concern has been raised by the fact that of the 35,000 cars bought through the scheme so far; only 7,000 were actually built in the UK.

However, after 11 consecutive months of falling sales, the motor industry is grateful for any boost at all. Despite the scheme’s success, new car production in the UK was still over 50% down on the same month last year.

An alternative to buying a new car that is worth thinking about in these times of uncertainty is leasing one for 36 months. Fulton Leasing has one of the widest ranges of lease cars in the UK – including the MPV/people carrier range – ideal for growing families. Email us – let’s do a deal!