If you’re in the market for a new car but haven’t got round to claiming your scrappage allowance just yet then don’t worry, you’ve got loads more time.
Business Secretary Lord Mandelson today announced that the scrappage scheme would be extended to another 100,000 buyers on top of the 300,000 when the scheme was launched. Dealers have become addicted to the rush of sales generated by the scheme and are increasingly afraid of what will happen when it ends, so they’ve been lobbying for an extension.
Of course, the fact that this will push the scrappage scheme closer to the general election is probably a coincidence. Just remember, you might be getting a £2,000 allowance but only half of that is coming from the government (the other half from the dealer) and if the purchase price is high enough they’ll be getting even more back in VAT.
I wonder what other good cars will meet a premature end thanks to this extension.