CAR industry fears have been proven correct – makers must MATCH Government scrap funds!

The Government is only supplying £1000 for the £300m scheme. To make up the full £2000, as announced by Chancellor Darling, car makers must add £1000, too.

This alone has left the car industry reeling!

However, in an another U-turn, the need to purchase green low-CO2 cars has also NOT appeared in the announcement.

Instead, it’s being billed purely as a new car sales incentive – with the green element coming from the fact old, dirty cars will be replaced by green new ones.

Reactions will follow when we get them… take our word from it though, the car world is not happy.

SCHEME DETAILS

•    £1000 – Government, £1000 – Car industry

•    Runs Mid-May to March 2010

•    Cars 10 years or older, or vans up to 3.5 tonnes

•    Scheme is voluntary

•    All cars must be MOT’d

•    Cars must be registered on/before 31 July 1999

•    Person buying car must be registered keeper – and have OWNED THE CAR FOR 12 MONTHS

•    Car dealers will check the old car qualifies

•    Car dealers will do all the paperwork

•    Car dealers will arrange for the old car to be scrapped

Business Minister Ian Pearson said:’ People will not only save hard-earned cash on buying a new car or a van for their business but they will know they are helping save jobs too.

‘If you’ve got a vehicle that’s ten years old or more, you just need to talk to a participating dealer who will do the rest. You will get at least £2,000 towards a new one.’

Tags: Budget, darling, incentive, new car scrappage, scrap

This entry was last updated on Saturday, April 25th, 2009 at 12:55 pm and is filed under Scrappage.