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Car scrapping scheme could run dry of funds early

June 17, 2009 by admin  
Filed under News, News-Insurance

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It has been announced that the car scrapping scheme that the government put into place after the budget could run out of money six months earlier than anticipated.

According to a recent report the scheme has proven very popular amongst drivers with older vehicles, and many have taken advantage of the opportunity to get £2000 towards a new car for scrapping their old cars that are at least ten years old. However, this has resulted in more money than anticipated already being used up, and means that finds could dry up as early as August.

The scheme was put into place to try and revive the struggling motor industry, with the sale of new cars having plummeted.

The amount that was put aside to fund the scheme was £300 million, which would mean that 300,000 driver that had cars that were at least ten years old and that they had owned for at least twelve months could get rid of their old vehicle and get a brand new one with £2000 put towards it by the government and the motor industry.

It was though that funding would run out by around February of next year. However, new cars have been flying off the shelves as a result of the scheme, and if the current level of take-up continues officials have said that it is more likely to be August of this year when finding dries up.

However, take-up could become steadier, and this means that scheme would run for longer.

One official said: ‘It’s possible this will calm down to a steadier rate of cars bought through the scheme. When more definitive figures emerge, we can see how long the scheme will run for.’

Tags: car scrapping, scrapping, report, cars, result, car, scrap cars, advantage

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