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Scrappage scheme gets month extension

An extra month has been added on to the Governments car scrappage scheme, pushing the deadline back to the end of March or until the money runs out.

The initiative was originally due to close at the end of February.

Announced by the Department for Business Innovation and Skills, the extension will allow time for manufacturers and dealers to prepare for and operate the final stages of the scheme.

Last month, BIS revealed that in order to ensure a smooth end to the scheme, car manufacturers would each be given a quota as to how many cars they are able to order under it. (see MRW story)

Business secretary Lord Mandelson said: Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.

If youre considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited.

The Government is to formally write to all manufacturers to confirm the new deadline.
So far, over 330,700 new vehicle orders have been placed under the car scrappage scheme. The £400 million scrappage budget, means up to 400,000 car-owners can take advantage of the initiative.

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