Government scrappage scheme to enter exit phase - manufacturer order allocations set

The final phase of the Government’s scrappage scheme will begin Wednesday 24th February, said Business Secretary Peter Mandelson today, reminding would-be car buyers there are now less than 50,000 potential further orders left.

As part of the exit phase the Department of Business has allocated potential order quotas to manufacturers based on brand popularity. This quota allocation process will help ensure a smooth closing of the scheme.

Lord Mandelson, Business Secretary said: “This is last orders for the scrappage scheme. Car owners need to move quickly to avoid disappointment if they want to buy a new car at a discount.

“Industry figures have showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976."

The UK scheme, with up to £400m from Government and matched funding from manufacturers, is intended to provide a short term boost to industry and stimulate consumer demand 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.

Scrappage exit phase – What you need to know

1. When will the exit phase end?

The exit phase will end when the budget for the Government?s scrappage scheme runs out or at midnight on Wednesday, 31st March 2010, whichever is the sooner.

2. How will the quota system work?

Each participating manufacturer will be given an allocation of remaining potential orders based on consumer demand. This will give manufacturers and consumers certainty as to how many potential scrappage orders are available to them. For information on quota availability at the manufacturer of your car of choice you can contact your local dealer.

Information supplied by Retail Motor Industry