Scrappage scheme to be extended
No further funds have been made available to the scheme; the Government says the extra four weeks will give car manufacturers and dealers the time they need to operate the exit phase of the scheme.
Around 330,000 vehicles have been bought through the scrappage scheme since it began in May last year. The Government had set aside funds to assist the sales of 400,000 vehicles.
Manufacturer quotas will be apportioned once sales reach 350,000. For the remaining 50,000, manufacturers will be apportioned quotas to ensure dealers can't sell a car through the scrappage scheme if the money has run out.
These quotas will be based on a manufacturer's sales since the scrappage scheme started, however quotas will be reallocated to other manufacturers if demand dictates.
The scheme will now end on March 31, or sooner if the money runs out.
Plate change sales boost
The scheme had been scheduled to finish at the end of February, but the extra month means that car buyers can get a new '10-plate car through the scheme.
A car registered in March 2010 on a '10-plate car should be worth more when it comes to sell it on than a car registered in February on a '59 plate.
Business secretary Peter Mandelson said: 'Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.
'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.'