Scrappage scheme revs up car sales

More than 150,000 people have bought a new car as a direct result of the Government's "cash for bangers" initiative, it has been revealed.

The £2,000 incentive, which asks motorists to trade in vehicles over 10 years old for a discounted new car, has just passed its halfway point and is already being hailed a success.

July car sales increased by 2.4% last month, which is the first monthly rise for more than a year - and the new scheme has been given a lot of the credit for the sales boost.

Consumers in south east England have been the keenest to take part in the scheme, which involves the Government and the motor industry sharing the cost of a £2,000 incentive.

Half of the £300 million funding for the scheme remains and the Government is delighted with the results for both the sales lift and the greener alternative the newer vehicles represent with 25% lower C02 emissions.

Business Secretary Lord Mandelson said: "I'm pleased that we have already achieved over 150,000 new car orders. This is a great deal for manufacturers and dealers, not to mention the customers.

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