Used car scrappage scheme stimulates market

09 February 2010

The government's used car scrappage scheme has helped to stimulate the general market.

Used car owners trading in their vehicles as part of the government's scrappage scheme have helped to stimulate the car market by 20.4 per cent since May 2009.

The Society of Motor Manufacturers and Traders notes that since the launch of the scheme, 311,159 new car registrations have been processed, with funding for an additional 60,000 vehicles still available.

The programme means those buying a car can receive £2,000 towards their new vehicle by scrapping their used car provided it meets certain criteria.

Despite January seeing a drop in new cars registered through the scheme, it has been so successful that the government has extended the used car scrappage scheme to the end of March 2010.

SMMT chief executive Paul Everitt said: "Scrappage continues to provide an important stimulus to the new car market but the decreasing reliance on the scheme is encouraging news for post-scrappage stability."

Used cars registered in the UK before March 2000 could qualify for the scrappage scheme.

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