'Scrappage scheme helped 400k invest in new cars'

'Scrappage scheme helped 400k invest in new cars'

Posted by Louise Clark

Up to 400,000 consumers were able to invest in new vehicles under the scrappage scheme, the government has announced.

The initiative came to an end on March 30th and provided thousands of Britons with £2,000 towards investing in new cars.

Commenting at the scheme's end, business secretary lord Mandelson said the initiative had achieved the desired result.

"The figures show that this scheme gave vital support, boosting demand when the industry needed it most, helping to position the auto sector to meet the challenges of building a strong low carbon future," the minister said.

Among the findings is that the scheme contributed to 20 per cent of all new car registrations, with half of those taking advantage of the cut price models having never bought new cars previously.

During the scrappage scheme, the government announced an extension to the initiative and also reduced the age of vans eligible for scrap under the scheme.