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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.
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