Department for Business, Innovation and Skills
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Government scrappage scheme a winner with consumers
Figures released today show that the Government's scrappage scheme has proved popular with consumers as manufacturers reported brisk sales, with more than 35,000 orders since the announcement of the £2000 scrappage subsidy. This equates to one scrappage scheme order out of every five new car orders in this period.
Gordon Brown welcomed three new car buyers that had benefited from the scheme at Downing Street this morning. The Prime Minister said:
"I am determined to do everything I can to see Britain through the downturn quickly and build a stronger Britain for the future. That is why I am delighted that over 35,000 people have already taken up the Government's offer of help to buy a new car when they scrap their old one. This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars."
Business Secretary Lord Mandelson said:
"The scrappage scheme has got off to a flying start. It has given car sales a major boost and offers consumers a great deal.
"Even after two weeks the sales figures are impressive. As it operates on a first come, first served, basis and cannot last forever, consumers should get in sooner rather than later for these great deals."
The UK scheme, with £300m from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain in the wake of falling sales. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.
Notes to editors:
1. The £2,000 grant is made up of £1,000 from government with matched funding from vehicle manufacturers. The scheme will operate from 18 May until March 2010 or until the government funding has been used.
2. It applies to commercial vans (up to 3.5 tonnes) as well as cars that are 'T' registration or older.
3. 38 manufacturers have signed up to take part in the scheme :
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, Rolls Royce, SAAB, SECMA UK,
SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen &
Volvo.
4. How to apply
The dealers will do all the
paperwork for motorists participating in the scheme and arrange
for the old vehicle to be scrapped. The dealer will check that the
vehicle being traded in and the new one being bought qualify under
the scheme:-
OLD VEHICLE
* Passenger car or small van not exceeding 3.5
tonnes
* Registered in United Kingdom on or before 31 August
1999
* Currently registered with DVLA or DVA to the registered
keeper making the application
* Current MOT test
certificate
* has been registered to the customer continuously
for 12 calendar months before the order date of the new
vehicle
* has a UK address on the registration certificate
(V5C)
* has a current MOT test certificate before the date of
order for the new vehicle, or one that has expired no more than 14
days before the order for a new vehicle was placed
* is taxed
and insured
NEW VEHICLE
* Passenger car or small van up to 3.5
tonnes
* First registered in the UK or after the date the
scrappage scheme is launched and declared new at first
registration in the UK with no former keepers
* UK
specification vehicle
* Registered to the same registered
keeper as the registered keeper of the eligible vehicle to be scrapped
