Official: no scrap scheme extension

Almost 200,000 cars have been registered under the scrap scheme (195,009 as of 30th August, to be precise), but the Government has confirmed that it will not be adding any more money to the pot to extend it.

July and August saw sales growth for the first time in over a year, prompting calls by some carmakers and business groups to extend the scheme, which is due to end either in March 2010 or when the £300m pot runs dry.

Car sales were up six percent in August compared to the same month last year, and some makers - like Hyundai - are experiencing a sales bonanza as owners trade in their old bangers for cheap, fuel-efficient city cars. The Korean maker told Yahoo! Cars it favours a 'soft landing' approach, in which the scheme is extended but the offer halved, effectively giving the customer £1,000 off the price of a car - £500 from the maker and £500 from the Government.

Lord Mandelson, however, says the Government have “no plans” for extending the scheme at present.

Mark Nichol