Extended scrappage scheme starts today

The extended scrappage scheme comes into effect today and now it includes cars aged nine years old or more rather than ten.

The age qualification for car owners now extends the benefits to cars registered on or before 29 Feb 2000 (V registration).

The new rules also mean van owners looking to trade in their vehicles will now be able to scrap their eight-year-old van instead of the previous 10-year requirement.

Last month the Government said it would extend the £300 million scheme with extra £100 million worth of funding. This extra cash injection means that up to 400,000 vehicles can be bought under the scheme.

The Government says it had ‘listened to industry’ that was fearful the end of scheme would see a dramatic drop in new car sales.

Business Secretary Lord Mandelson said: ‘Consumers and businesses looking for a new vehicle should make the most of the scrappage scheme now. With the new terms, the Government’s scrappage scheme makes it accessible to even more consumers, but it has to end when the funding runs out.

‘Industry figures show that the scrappage scheme is continuing to boost the market. The automotive sector is a cornerstone of British manufacturing. That is why the Government plans to extend this successful scheme with an extra £100 million of funding.’

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

Sourced via channel4.com