Scrappage scheme is extended

• £100m extra funding for scrappage scheme
• Will cover an extra 100,000 purchases
• More vehicles to qualify for the scheme

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The scrappage scheme will be extended, the Government has confirmed. More money be made available to car and van buyers, and more vehicles will eligible for the scheme.

Business Secretary Lord Mandelson announced an additional £100 million today, allowing the scheme to fund the purchase of a further 100,000 vehicles.

Big success so far
So far, 227,750 orders have been placed using scrappage money, and the new funding means the scheme will be able to cover the purchase of up to 400,000 vehicles.

As before, the Government will give the car buyer half of the £2000 grant, with the car manufacturers providing the other half.

The scheme will come to an end in February 2010 or whenever the money runs out, whichever is sooner.

More cars to qualify
At the same time, the Government also said that more vehicles will be eligible for scrappage.

The age of eligible cars will be extended by six months, so that any car registered on or before February 29, 2000 ('V' registration) will qualify. Vans of more than eight years old (registered on or before February 28, 2002) will also qualify.

Lord Mandelson said: ‘The scrappage scheme has delivered a boost to manufacturers and the supply chain. We have listened to the concerns of manufacturers and are increasing the funding of the scheme to £400m.

'However, we must make sure that the help we do offer is targeted, limited and proportionate. This is not a blank cheque to the auto manufacturers, but recognition that there is still a short-term challenge to boost demand and confidence in the sector.’