Car scrapping is a booming business, and Lord Mandelson has duly addressed its importance, by announcing an investment of a total of £400 million to the industry as an extension to the scrappage scheme is to become a much needed reality.
The new phase of the scheme will continue till February 2010. This will allow car owners to trade in their decade-old cars for a new one, and they will receive a hefty discount of £1950 on their new ride.
The age restriction of the old cars has also been relaxed for six months. The scheme will allow nearly 400,000 car owners to get new wheels, although nearly a million car owners are expected to apply.
According to Janet Connor, managing director of RIAS, this is going to attract a huge number of motorists due to the ongoing recession. She thinks the discount of nearly £2,000 is likely to draw the attention of many car owners who are thinking of getting a new vehicle.
CEO of the Society of Motor Manufacturers and Traders, Paul Everitt went further, by stating that this new scheme will help to develop a strong and sustainable economy, by creating an upsurge in demand, and providing a wider consumer access.