The Government’s “cash for bangers” £400 million car-scrappage scheme ends today (Wednesday) having considerably boosted the sale of new motors.
Introduced last May, the initiative has seen owners of older vehicles being given £2,000 to get rid of their aged motor in exchange for a new one.
The scheme had proved popular and successful abroad and there was much pressure put on the UK Government before it agreed to introduce the initiative.
With the £2,000 grant being split between the Government and the motor industry, the scheme had an immediate effect on new car sales which had been in the doldrums at the beginning of 2009.
By July last year, monthly sales had improved year-on-year for the first time in 15 months. Sales have continued to rise each month since.
Business Secretary Lord Mandelson said: “The scheme was always time limited and today as it closes I am pleased to see scrappage has delivered the results we aimed for - not just for manufacturers, but for the whole industry and its supply chain
“The figures show that this scheme gave vital support, boosting demand when the industry needed it most, helping to position the auto sector to meet the challenges of building a strong low-carbon future.
“I fully endorse the initiatives already taken by industry to offer new deals and additional savings to customers still interested in buying a new car.”