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More than 35,000 new cars have been bought by people trading in their 10-year-old bangers for brand-new, eco-friendly vehicles under the £2000 discount scheme introduced by the Government only a fortnight ago.
Prime Minister Gordon Brown said the scheme "not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars".
The Government said the scrappage scheme had accounted for one-in-five new car orders since it was launched two weeks ago.
Business Secretary Lord Mandelson said: "The scrappage scheme has got off to a flying start. Even after two weeks the sales figures are impressive."
But he played down suggestions that if the scheme was successful it might be extended: "As it operates on a first-come, first-served basis and cannot last for ever, consumers should get in sooner rather than later for these great deals."
The high immediate take-up means that £35 million of the £300 million subsidy announced in the Budget has already been used up. Originally Chancellor Alistair Darling said he expected the scheme to run for about 10 months.
Motorists can claim a £2000 discount on new cars and small vans which is paid half by the Government and half by motor manufacturers. The incentive is aimed at kick-starting an industry which has seen sales plummet since the recession began.
Car production in the UK fell by 55% in the year to April and sales of new cars dropped 28% in the first four months of this year.
Paul Everitt, chief executive of the trade body the Society of Motor Manufacturers and Traders (SMMT), said the scheme had made a "very encouraging start". But he cautioned it could take several months to assess its impact.
According to the SMMT, 133,457 new cars were registered in April. It is not yet clear whether the 35,000 sold under the scrappage scheme will be over and above that level.
Many dealers said they believe people put off purchases until the scheme came into force on 18 May.
There were also early hitches with Ford, Vauxhall and Honda refusing to start immediately until issues over who picked up which part of the discount bill was clear.
Reader views (15)
The only 10 year old bangers we need to get rid of are this clapped out Government!
- Alan, Chigwell.UK, 31/05/2009 21:48
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Its not about keeping British workers in jobs; and even less about Eco friendly vehicles, and joke of all jokes, Gordon Brown and the Labour Party helping hard pressed consumers; its about companies selling piles of unsold cars and the government getting tax revenues from you suckers.
The British Nation; and its entire industrial base, was sold off cheap long ago for tax cuts for the wealthy; now they are desperate to get any taxes at all to pay for their Banking, and financial service industry problems.
Without cars and houses being financially exploited by Governments of all colours, and the people being encouraged by the Governments to live in constant debt; they have nothing else to sell that will bring in the taxes they desperately need for their Bankers, and their own expensive life-styles etc.
Stop propping up the State; and prop up yourselves and your families instead; they care nothing about you; so why bother caring about them?
A mug is born every minute.
- Mickyinlondon, london, 31/05/2009 14:14
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Aston Martin was sold to a UK-led consortium in 2007 for £479m
- David, Abbey Wood, 31/05/2009 14:13
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What a load of rubbish. What happened to improving public transport? And why has an election not been called? Why are these people still in power?
- Angel, London, Lewisham, 31/05/2009 11:28
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Aston Martin are Ford owned - not British!
- John, London, 31/05/2009 09:29
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I still can believe people have fallen for this, buy a nearly used car (1yr old and 10,000 miles on the clock) and then see what real savings you can make on a new car.
- David, Abbey Wood SE2, 30/05/2009 09:37
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Perhaps this scrappage scheme could be applied to this government, two grand is about as much as each of them is worth.
- Chris, Woking. UK, 29/05/2009 16:57
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'British built' is often something of a misnomer .... 'British assembled' is more accurate for many. As for British owned I think it's Morgan,then probably Caterham. After that you have to jump to Aston Martin plus a handful of other (generally very expensive) specialists. I too reckon Keith in Luton is a Labour plant - luckily he's not a car plant!
- Paul, London, 29/05/2009 16:30
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My views are my own Edith. I just googled NuLabour and it doesn't exist. I voted Labour on two occasions in my life. Both times they won
- Keith Price, Luton, England, 29/05/2009 14:22
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Keith Price, Luton, where have you been living - Britain does not make any high volume consumer cars, the closest we have are foreign cars owned by foreign companies ..... who will benefit ..... the foreign companies.
Jaguar. Rolls Royce and Bently ...... all foreign i am afraid.
Well done Gordon and Mandy!
We cant all go out and but TVR's and Morgans (only ones i can think of at the moment) - any more please. let me know.
- Mike, London, 29/05/2009 13:48
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The next scandal to be investigated by the Telegraph will be the "cash for postings on newspaper comments boards" by keith Price in Luton and Val in Spain. Perhaps they could both "come clean" now and volunteer how much they are paid by Gordon and the NuLabour party for their constant praise and adoration comments.Or perhaps they are currently employed by nuLabour under alias's. No one could surely be that gushing all the Time ?
- E.Nuff, London, 29/05/2009 12:58
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I just scrapped my 11 year old car and bought a Volvo, which will be built in Sweden"
So why aren't you backing Britain by buying our cars?
Less than patriotic that
- Keith Price, Luton, England, 29/05/2009 12:40
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Gordon has it wrong again, i just scrapped my 11 year old car and bought a Volvo, which will be built in Sweden, so much for British jobs.
- Mario Kempe, london, 29/05/2009 12:32
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Yeah well done Gordon. The German, French, American and Italian companies we're subsidising must be over the moon........why was it not restricted to cars actually built in the UK?
- Mark, London, 29/05/2009 10:53
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The 'scrappage schene' is proving to be a brilliant Gordon Brown initiative. Well done Prime Minister
- Keith Price, Luton, England, 29/05/2009 10:16
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