Car scrappage scheme extended for one month
12 Feb 2010
An extra month has been added to the deadline for the government’s car scrappage scheme. According to the Department for Business Innovation & Skills (BIS), this is to allow manufacturers and dealers more time to prepare for the exit phase of the scheme.
This change was announced following requests from car manufacturers for more time to prepare dealers and inform consumers, said BIS.
Previously due to end in February, the scheme, which is jointly run by the government and car manufacturers, will now run until the end of March or until the money runs out, whichever is the sooner. The original intention of the scheme was to provide a boost to demand and immediate support on a short-term basis to the car industry and its supply chain in the wake of falling sales, as well as encourage consumers to invest in potentially more environmentally friendly models. An aim that according to Alan Greenouff, chairman of the British Vehicle Salvage Federation, has not been realised.
“Like the rest of the motor trade the scrappage scheme has been good for the vehicle salvage operators, members of the BVSF. It has provided a welcome supply of ELVs; many premature for processing. Most have been good quality cars giving plenty of reuseable spare parts. It has also boosted the number of Certificates of Destruction (CoDs) issued and could help the spare parts recycling figures required to meet the government’s recycling targets. However there is concern that there will inevitably be a sudden drop in the flow of such cars into operators’ premises when the scheme finishes shortly.
“The fact is that the government’s hope that the scheme might get rid of many of the old bangers off the road has not been so. The people who have taken advantage of the scheme have mainly been those who can afford new cars. We are seeing more of the older cars, some of which should perhaps be scrapped, remaining on the roads and not coming through the BVSF members’ premises for disposal,” added Greenouff.
Duncan Weymss, association secretary of the Motor Vehicle Dismantlers Association echoed Greenouff’s concern about the drop in the volume of ELVs.
“There’s no doubting the scheme has been successful. It has generated a volume of cars that would not have been in place and so an extension to the scheme can only be good. However, once the scheme does come to an end, there will be a vacuum.”
In the final stages of the scrappage scheme, BIS said “manufacturers will be apportioned order quotas to aid an orderly close down”.
Changes to the scheme announced in September meant it was extended to vans over eight years old and the age qualification for cars was changed by six months to extend the scheme to cars registered on or before 29 Feb 2000 (V registration).