The vehicle Scrappage Incentive Scheme has ended today having successfully turned around the ailing new car market from the lows of early 2009.
Around 20% of all new car sales since May 2009 have been attributed to the scheme. The last orders were made yesterday.
Dealers have up to four months (from the date of order) to deliver new vehicles ordered under the scheme.
While the 2010 market is expected to dip, the recent increase in fleet and business demand is expected to soften the impact of the end of the scrappage scheme believes the Society of Motor Manufacturers and Traders.
Scrappage scheme facts (May 2009 – February 2010):
* 324,991 new cars registered
* 54% of scrappage customers had never bought a new car before
* Scrappage accounted for 20.4% of all new car registrations
* LCV registrations total 5,460 units, 3.8% of the total LCV market
* More than half (56%) of those surveyed said they would not have bought any vehicle at this time if the scrappage scheme had not been introduced
* Average CO2 emissions of a car bought through the scheme were 132.7g/km, 9.9% below the overall new car market average and 27.0% below a scrapped car’s figure.
Today Lord Mandelson, business secretary, said: “The scheme was always time limited and today as it closes I am pleased to see scrappage has delivered the results we aimed for – not just for manufacturers, but for the whole industry and its supply chain.
"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.
“I fully endorse the initiatives already taken by industry to offer new deals and additional savings to customers still interested in buying a new car.”