Scrappage scheme enters final phase

Car owners have been urged to hurry if they wish to take advantage of the Government's scrappage scheme as it enters its final phase.

Under the scheme, buyers trading in vehicles more than 10 years old get £2,000 discount on new models. Half the grant comes from the Government while the rest is provided by manufacturers.

Since its launch in the Budget in April last year, the initiative has resulted in more than 355,000 orders for new cars and vans. But ministers have insisted that it will not be extended once the £400 million allocation runs out at the end of March.

A total of 37 carmakers have signed up for the final phase and have been given shares from a potential 50,000 orders as the scheme draws to a close.

Business secretary Lord Mandelson said: "This is last orders for the scrappage scheme. Car owners need to move quickly to avoid disappointment if they want to buy a new car at a discount.

"Industry figures have showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976."

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