Scrappage scheme drawing to an end

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The final phase of the Government's car scrappage scheme has begun, with 37 motoring firms allocated shares from the remaining 50,000 potential orders.

Business secretary Lord Mandelson said: "This is last orders for the scrappage scheme. Car owners need to move quickly to avoid disappointment if they want to buy a new car at a discount."

Car buyers are offered a £2,000 discount under the scheme on new models in exchange for vehicles more than 10 years old. The Government and manufacturers furnish an equal share of the grant.

Introduced in the Budget in April last year, the scheme has so far seen more than 355,000 orders for new cars and vans.

Lord Mandelson noted: "Industry figures have showed again and again the benefits that the scrappage scheme is continuing to deliver to the automotive sector and beyond. It is great news that in January scrappage helped the industry to achieve its biggest output gain since May 1976."

But the £400 million Government funding for the programme is due to run out by the end of March and ministers have said it will not be extended.

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