Figures released today show that more than three quarters of the budget for the Government’s scrappage scheme has been used up. Funding for less than 82,000 new vehicles orders is left for consumers to take advantage of under the scheme, as it nears its end
As the scheme enters its final stages the Department for Business will allocate order quotas to manufacturers. The quota system will be based on brand popularity and will help ensure a smooth closing of the scheme.
Lord Mandelson, Business Secretary said:
“I’m pleased to see that the 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 under the scheme have also seen a boost, following the changes made to the scheme in September, with vans registered before February 2002 now eligible. Since these changes came into effect half of all vans scrapped through the scheme were less than ten years old and there have been reports of van fleet owners upgrading their entire stock.
The regional breakdown shows that take-up of the scheme broadly follows that of regional car ownership. Scrappage has proved popular with car buyers across the UK with take-up highest in the South East (18%), the East of England (12%), the North West (11%) and South West (11%).
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.
Notes to editors:
• By 14th January 318,628 new vehicle orders were taken under the scrappage scheme since it was announced in the Budget in April.
• Under the final stages of the scrappage scheme manufacturers will be apportioned order quotas to aid an orderly close down of the scheme.
• Changes to the scheme announced in September meant:
• The scheme was extended to vans over 8 years old rather than the previous 10 year requirement
• The age qualification for cars was changed by 6 months to extend the benefits to cars registered on or before 29 Feb 2000 (V registration)
• After listening to the needs of the industry, Government provided an additional £100 million of funding for the scrappage scheme. This was approved in October and the scheme now will cover up to 400,000 transactions.
• The scrappage scheme figures are updated on a weekly basis, with all available statistics on the BIS website here: http://www.berr.gov.uk/whatwedo/sectors/automotive/scrappage/page51068.html
DETAILS OF THE SCHEME
· The £2,000 grant is made up of £1,000 from government with matched funding from vehicle manufacturers. It applies to commercial vans (up to 3.5 tonnes) as well as cars.
· 38 manufacturers (forty one marques/brands) have signed up to take part in the scheme: Allied Vehicles, Audi, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco , Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks , Rolls Royce, SAAB, SEAT, SECMA UK, Skoda, SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen & Volvo.
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:-
· Car or small van not exceeding 3.5 tonnes
· Registered in United Kingdom on or before 29 February 2000, for cars or on or before 28 February 2002, for vans
· Currently registered with DVLA or DVA to the registered keeper
· 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 or one that has expired no more than 14 days before the order for a new vehicle was placed
· has a current tax disc or has a tax disc that has expired no more than 14 days before the time of the order
· is insured when the order for the new vehicle is placed
· Passenger car or small van up to 3.5 tonnes
· First registered in the UK on or after the date the scrappage scheme was launched and declared new at first registration in the UK with no former keepers
· UK specification vehicle (can include left-hand drive vehicles that meet UK specifications)
· First registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.
Phone: For enquiries please contact the above department