Thursday, February 4, 2010

Cash for bangers car scrappage scheme extended for one month

After determining to finish at the end of February, the ministers decided that scrapping the scheme can now be implemented until the end of March. Yet no new funds are introduced into the system by the government, than the 400 million pounds already committed.

It is attributed to the credit of saving the beleaguered auto industry its biggest crisis in decades, with 15 months of falling sales and redundancies.
The trend was reversed in July and in October 31.6 percent sales increase over 2008 was the biggest increase in sales in 10 years.

Until late January, 330,722 cars were purchased under the scheme, which the government helped the car manufacturers to the grant of £ 1000.

In all 38 manufacturers have chosen the program, including the Bentley and Rolls Royce and mass market producers.

Earlier this year, published by the Daily Telegraph that the government was due to an unexpected windfall of the scheme, since the value added tax, which he received from scrap sales expected to exceed the amount the Treasury has entered into the program.

Announcing the move, Mr Mandelson, the Business Secretary, said: "Against the backdrop of the economic downturn scrapping scheme is a great success, driving a UK car, protecting jobs, and for the automotive supply chain to support a time when the industry needed it most.

"If you're planning to buy a new car, do your order as soon as possible to avoid disappointment, because the budget is strictly limited."

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