The government‘s Scrappage Scheme officially ended on March 31st, 2010. At least 330,000 cars have been sold under the scheme; accounting for a fifth of cars sold and helped the recession-hit motor industry cope with falling sales.
The UK scheme, which offered new car buyers a £2,000 discount if they scrapped a car older than ten years, was a resounding success. The scheme provided a much-needed boost to the motor industry and helped save an estimated 4,000 jobs. However, as the scheme comes to an end there are fears car sales may fall sharply in the UK.
Paul Newton, an automotive analyst for IHS Global Insight, said: "The ending of the incentive is bound to have a deadening effect on car sales. If it happens when the economy is starting to pick up, you've caught it just right and the scheme would have done a cracking job. But if the economy is still in the doldrums when the scheme ends, there could be a very large drop off in sales."
However, many manufacturers are making the most of this opportunity by launching their very own ‘Swappage Scheme’, which will basically follow on with the same principles of offering a large discount in return for trading in an old car. There are no guidelines for how the new scheme will operate, so you can expect varying terms and conditions between each manufacturer.
Some of the manufacturers involved with this new scheme include Toyota, Skoda, Volvo and Peugeot, with many offering up to £2,000 for a swap.