29/05/2009

Scrappage Scheme Boosts Car Sales

More than 35,000 new cars have been ordered through the UK's scrappage scheme, since it was introduced, new figures have revealed.

This equates to one scrappage scheme order out of every five new car orders in this period.

Gordon Brown welcomed three new car buyers that had benefited from the scheme at Downing Street this morning.

The Prime Minister said: "I am determined to do everything I can to see Britain through the downturn quickly and build a stronger Britain for the future. That is why I am delighted that over 35,000 people have already taken up the Government's offer of help to buy a new car when they scrap their old one.

"This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars."

The UK scheme, with £300m from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain in the wake of falling sales. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.

Business Secretary Lord Mandelson said: "The scrappage scheme has got off to a flying start. It has given car sales a major boost and offers consumers a great deal.

"Even after two weeks the sales figures are impressive. As it operates on a first come, first served, basis and cannot last forever, consumers should get in sooner rather than later for these great deals."

(JM/BMcc)

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