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Did You Take Advantage of the Scrappage Incentive on Your New Car Purchase While You Could?
For more than a year, the new car market in the UK had been on continuous decline. The Society of Motor Manufacturers and Traders noted that with the implementation of the Scrappage Incentive Scheme, demand was finally on the rise. Demand rose in both July and August, when compared to sales from 2008. In addition, vehicle production decline demonstrated a tapering off. With shaky consumer confidence still affecting the new car market, the Scrappage Incentive Scheme has been a saving grace.
The Scrappage Incentive Scheme began May 18, 2009. Motoring enthusiasts who voluntarily scrap their old car receive £2,000 towards the purchase of a new car. Scrapped cars must have been registered on or before 31 August 1999, to be eligible. Not only was the scheme created to increase demand for new cars in a failing market, but also the program has the added benefit of remove hundreds of thousands of older, less efficient cars off the roadways. Half of the £2,000 is provided by the government, while the other half comes directly from car manufacturers. The popularity of the program has been further facilitated by additional incentives from auto manufacturers, above the scheme's original contribution. New car buyers were able to select any new automobile they wish, up to 3.5 tonnes.
More than 100,000 new vehicles have been registered through the Scrappage Incentive Scheme. Banks have further ordered an additional 100,000 to be sold. At this rate, the current funding for the Scrappage Incentive Scheme was likely run out sometime between late October and early November. However, the Society of Motor Manufacturers and Traders requested the government to extend the programme - unsuccessfully.
The original close date of the Scrappage Incentive Plan was the end of February 2010. However, with the overwhelming response, the program was short approximately four months worth of funding. Manufacturers and car traders alike believed that an extension of the scheme would further solidify consumer confidence and help ensure new car demand was stabilized. Those who were looking to take advantage of the Scrappage Incentive Scheme, with their new car purchase, shouldn't have waited wait though. Without increased funding, the programme is unlikely to be resurrected.