An extra £100 million extension to the Governments car scrappage scheme came into effect on 22 October, as Lord Mandelson confirmed there will not be any money added after this has gone.
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 Governments 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.
Announced in September, the additional money brings the total funding up to £400 million, enough to cover 400,000 vehicles in total. It has also been expanded to cover vans that are eight-years old rather than the original ten-year requirement for cars.
The deadline to apply for the scheme is by February 2010 or before the funding runs out.
When the Government announced the decision British Metals Recycling Association director general Ian Hetherington said: The BMRA is pleased that the Government has extended the scrappage scheme. So far, it has helped to bring increased capacity into the industry at a time of otherwise reduced volumes for metal recyclers and is good for business.
The scrappage scheme has real environmental and economic benefits. Some BMRA members are achieving material recovery rates in excess of 85% on ELVs and the materials are being re-used.