Britons have ordered over 35,000 new cars since the government introduced its scrapping scheme last month, official figures have confirmed today (29th May).

The £300 million scheme was outlined in the Budget announcement after sales of new cars in the UK declined by 28.5 per cent in the first four months of the year.

According to the statistics, about one in five subsequent buyers have benefited from the strategy, which involves a £2,000 discount for trading in cars over ten years old for scrap.

Although ministers believe the financial incentive has led to sales which would not have otherwise occurred, some motor industry figures have urged caution over its influence.

Paul Everitt, Chief Executive of the Society of Motor Manufacturers and Traders, told the BBC its effectiveness should be assessed in a few months' time, but also described its initial impact as "very encouraging".

Meanwhile, the British Chambers of Commerce welcomed the latest data and expressed its hope that the scheme will provide a "much-needed boost" to the "embattled automotive industry".

The plan - which was not rolled out to fanfare from industry officials and motorists - is capable of funding 300,000 discounts, with the public purse providing £1,000 towards each one.

Prime minister Gordon Brown was inspired to adopt it after seeing the success of a similar scheme in Germany.

Source:

Scrap scheme boost to car sales (29/05/09)

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