Initially the Government placed a fixed budget of £300m on the scheme and scheduled it to expire at the end of February or once 300,000 customers benefited (whichever happened first).
In September, it extended the scheme to cover vans over eight years old (rather than the previous ten); lowered the age qualification for cars by six months to cover those registered on or before 29th February 2000 (V registration); and provided additional funding of £100m so that 400,000 customers can potentially benefit.
After Wednesday's announcement, the scheme - jointly run by the Government and car manufacturers - will now run until the end of March or until the funding runs out (whichever happens first).
As of 24th January, the scheme had helped fund orders for 330,722 new vehicles. (NB. The Government updates its figures on the scrappage scheme on a weekly basis and publishes statistics on the Department for Business, Innovation & Skills website.)
Commenting on the extension, 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 needs 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."
For more information on the scrappage scheme, visit the following links: