Cash for old bangers scheme boosts car sales by 35,000 vehicles

 

By Daily Mail Reporter

Last updated at 11:04 AM on 29th May 2009

 

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More than 35,000 new cars have been ordered by punters looking to take advantage of the new 'bangers-for-cash' scrappage scheme.

 

Motorists get £2,000 off a new car or van if they trade in a vehicle older than ten years under the initiative, which started a month ago.

 

For each deal, the Government stumps up £1,000 and manufacturers the other half.

 

 

Confident: Peter Mandelson and Gordon Brown meet with new car buyers who have used the Government's scrappage scheme at Downing Street

 

 

 

Confident: Mandelson in good spirits

 

 

Ministers were 'very pleased' with the take-up, which represents more than a tenth of the total subsidy available.

 

'The scheme seems to be delivering a boost very early in the scheme,' said a spokesman for the Department for Business, Enterprise and Regulatory Reform.

 

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.'

 

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.'

Sue Robinson, director of the Retail Motor Industry Federation, said: 'These figures would seem to show that the scheme is having a positive effect on the new car market.

'The incentive scheme is helping the industry revive sales, while also helping consumers get into a new car. This is a double win. The federation is conducting a study of the impact of the scheme by surveying the reaction seen by dealers. The results of the survey will be published next week.'

 

Mini effect: Brown and Mandelson view a brand new Mini at Downing Street

 

 

 

Scrap it: Government has set aside £300million, enough to provide up to 300,000 new vehicles

 

David Frost, director general of the British Chambers of Commerce, said: 'It is encouraging to see the scheme get off to a good start. Hopefully this momentum will continue providing the embattled automotive industry with a much-needed boost.'

 

A spokesman for the Society of Motor Manufacturers and Traders said: 'The (motor) industry has been encouraged by the positive start to the scrappage incentive scheme shown through increased orders, showroom traffic and web inquiries.

 

'But it will be a couple of months before we can really assess the true impact on the market through the monthly registrations data.'

All makes of cars have been ordered so far, with London Taxis among those being traded in.

 

Government has set aside £300million, enough to provide up to 300,000 new vehicles.

 

Actual deliveries started in mid-May, but the formal roll-out got off to a chaotic start when top-selling company Ford was among manufacturers who delayed taking part.

 

Last week Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said the scrappage scheme was 'enticing car buyers back into the showrooms'.

 

In the UK, 11 successive months of declines in new car sales have led to production cutbacks and job losses.

 

The scheme applies to vehicles registered before 31 July 1999, which incorporates T registration plates and earlier. The initiative is similar to programmes being introduced by major European countries including France and Germany.

They both really do need a new tailor.

They both really do need a new tailor.

 

Well you'd think Mandy would have better dress sense seeing as he's gay!!:P

Well you'd think Mandy would have better dress sense seeing as he's gay!!:P

 

And whats with the blue ties?, are they that stupid "please Tory voters, vote for us instead,look we're the same, we wear blue ties and everything"

Is it true that when Margaret Beckett first got wind of the scheme, she was worried she was about to get traded in??:rolleyes:

Don't forget Hazel Blears.

Don't forget Hazel Blears.

 

Until you reminded me, I had, thanks very much.................... :dozey:

 

:rolleyes:

Sorry, do you need some mind bleach?.

Sorry, do you need some mind bleach?.

 

No, but Ms. Blears could do with some hair bleach.................... :rolleyes:

Typical Labour, they took a great idea from the Germans (who I think were the first EU country to do a scheme), and made it worst.

 

It only really makes sense if your trading in an old car (which makes it sad that so many decent runabouts are getting sent to the scrapheap, when they could be used by the bargain hunters) for a small car, otherwises you could save more money on just by using dealer discounts. Also they should have allowed slightly new cars into the deal as well to get money off as buying brand new hits you in the pocket