Scrappage Scheme enters the finishing straight

The final phase of the Government’s scrappage scheme begins today! Car manufacturers have been allocated shares of about 50,000 potential further orders based on brand popularity by the Department for Business, to help ensure a smooth closing of the scheme, which is due to slam shut at midnight 31st March, or when the funds run completely dry.

Lord Mandelson, Business Secretary 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.”

It’s fair to say that the scheme has been a tremendous boost to the industry at a time when it was struck by the full force of the recession. The scheme, with up to £400m from Government and matched funding from manufacturers, offers £2000 off the price of a new car when a qualifying 10 year old is scrapped and is intended to provide a short term boost to industry and drive consumer demand during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.

Scrappage exit phase – What you need to know

1. When will the exit phase end?

The exit phase will end when the budget for the Government’s scrappage scheme runs out or at midnight on Wednesday, 31^st March 2010, whichever is the sooner.

2. How will the quota system work?

Each participating manufacturer will be given an allocation of remaining potential orders based on consumer demand.    This will give manufacturers and consumers certainty as to how many potential scrappage orders are available to them.   For information on quota availability at the manufacturer of your car of choice you can contact your local dealer. 

3. What brands are included?

37 manufacturers have signed up to take part in the final phase of the Government scrappage scheme, these are: Allied Vehicles, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco Ltd, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks UK Ltd, SAAB, SECMA UK, SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, and Volvo.

The scheme applies to light commercial vans as well as cars. 

4. Will I be able to get the car I want?

In this final stage of the scheme there are strict order limits on manufacturers.  To avoid disappointment consumers are urged to place their orders quickly, particularly if they have a specific car in mind.  However there will be a small further allocation towards the end of the scheme for those manufacturers that have proved particularly popular with consumers.  It is likely that your dealer will be keeping a waiting list for these. 

5. What if I miss out?

This Government scrappage scheme will not be extended.  However a number of manufacturers have already announced they plan to offer good deals to customers which will continue beyond the scrappage scheme.

So there you have it, the clock is ticking if you want to take advantage of the scrappage scheme – you have been warned!

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