Car insurance: Car scrappage scheme ends

Thursday, 01 April 2010

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The government's car scrappage scheme has finished, after helping more than 400,000 car insurance customers purchase a new vehicle.

Started in May last year, the project offered a grant of up to GBP2,000 to scrap an old motor in exchange for a new one and has been widely praised for providing a boost to the industry in difficult times.

Government figures show that scrappage contributed to 20 per cent of all new car registrations, while more than half of those who took advantage of it had never bought a new vehicle before.

A further 56 per cent of motor insurance holders surveyed added that they would probably not have invested in a new car had the scrappage scheme not been in existence.

Business secretary Lord Mandelson said that the project achieved what the government was hoping it would.

"The figures show that this scheme gave vital support, boosting demand when the industry needed it most, helping to position the auto sector to meet the challenges of building a strong low carbon future," he added.

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