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Scrap scheme boost to car sales Scrap scheme boost to car sales
(30 minutes later)
More than 35,000 new cars have been ordered through the UK's scrappage scheme since it was announced in April, government figures show.More than 35,000 new cars have been ordered through the UK's scrappage scheme since it was announced in April, government figures show.
It equates to one in five motorists who ordered new cars taking advantage of the £2,000 discount available for scrapping vehicles over 10 years old. This means that one in five of those who bought new cars took advantage of the £2,000 discount available for scrapping vehicles over 10 years old.
Ministers believe those cars would not have been sold had it not been for the financial incentive.Ministers believe those cars would not have been sold had it not been for the financial incentive.
Motor industry figures say it is too early to declare the scheme a success.Motor industry figures say it is too early to declare the scheme a success.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, acknowledged that the scheme had enjoyed a "very encouraging" start - through increased orders, visits to car showrooms and internet inquiries.Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, acknowledged that the scheme had enjoyed a "very encouraging" start - through increased orders, visits to car showrooms and internet inquiries.
However, he warned it could take a few months to fully assess its impact. However, he warned it could take a few months to fully assess the impact of the scheme.
The British Chambers of Commerce said it hoped the momentum could be sustained, "providing the embattled automotive industry with a much-needed boost".
DiscountsDiscounts
Sales of new cars in the UK fell 28.5% in the first four months of this year compared with 2008, as the recession deepened.Sales of new cars in the UK fell 28.5% in the first four months of this year compared with 2008, as the recession deepened.
In a bid to revive flagging sales, the government set aside £300m for the scheme, which was announced in April's Budget. In an effort to revive flagging sales, the government set aside £300m for the scrappage scheme, which was announced in April's Budget.
That was enough to fund discounts on 300,000 vehicles, with public funds providing £1,000 and manufacturers covering the remainder. That is enough to fund discounts on 300,000 vehicles, with public funds providing £1,000 - half the discount - and manufacturers covering the remainder.
HAVE YOUR SAY Facing a bill of several hundred pounds for an MOT I swapped my old gas guzzler for a low carbon Fiat Peter Dallmer, Andover Send us your commentsHAVE YOUR SAY Facing a bill of several hundred pounds for an MOT I swapped my old gas guzzler for a low carbon Fiat Peter Dallmer, Andover Send us your comments
Carmakers had lobbied ministers to put in twice that amount, as happens with a similar scheme in Germany.Carmakers had lobbied ministers to put in twice that amount, as happens with a similar scheme in Germany.
But despite initial disappointment from the industry and - according to some surveys - a lukewarm reception from motorists, the government believes its plan has already secured extra sales. But despite initial industry disappointment f and - according to some surveys - a lukewarm reception from motorists, the government believes its plan has already led to extra sales.
The BBC's John Moylan said: "The numbers reflect anecdotal evidence from car salesrooms. BBC business reporter John Moylan said that the figures reflected anecdotal evidence from car salesrooms.
"Makers of small, less expensive vehicles in particular have reported a significant pick-up in interest." "Makers of small, less expensive vehicles in particular have reported a significant pick-up in interest," he said.