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Scrappage scheme deadline extended

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04 February 2010

Scrappage scheme is endingThe government has announced that the scrappage scheme is to continue for another month, meaning it will not come to an end in March.

Car manufacturers said they needed more time to inform customers and motor traders' insurance policyholders of how the scheme's closure will affect them.

"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," emphasised business secretary Lord Mandelson.

He said that against the backdrop of a difficult economy, the scrappage scheme has proved to be a great success as it drives car sales and helps to protect jobs.

Manufacturers have been asked to apportion their order quotas to help the scheme come to an easy end.

Last month, the Department for Business, Innovation and Skills announced that more than three-quarters of the budget allocated to the scheme had been used up.

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Posted by Elizabeth Cook.ADNFCR-2243-ID-19597355-ADNFCR

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