The Government has announced more than three quarters of its budget for the car scrappage scheme has been used up. As the 'Cash for Bangers' scheme nears its end, funding for less than 82,000 new vehicles orders remains.
Because of the limited remaining funding, the Department for Business has amended the scrappage scheme laws and will now allocate order quotas to manufacturers. The scrappage quota system will be based on brand popularity and has been designed to "ensure a smooth closing of the scheme."
Business Secretary Peter Mandelson said:
"I'm pleased to see that the scrappage scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time. With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.
"Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes."
Van orders have also received a big boost as a result of changes to the scrappage scheme laws in September.
The UK scheme, with £400m 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 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.
To learn more about the scrappage scheme laws, read 5 Things You Need To Know About The Scrappage Scheme and Cash For Bangers Scheme Extended.