Scrappage scheme quota introduced

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Drivers are waiting to see how a new quota system for the car scrappage scheme will affect policies.

The Government introduced the system after revealing that more than three-quarters of the £400 million budget was used up. Funding for fewer than 82,000 new vehicle orders is left for motorists, with money due to run out at the end of February.

The Business Department will allocate order quotas to manufacturers based on brand popularity, aiming for a "smooth closing" of the scheme. Figures showed 318,628 new vehicle orders were taken, buyers receiving £2,000 for trading an old car for a new model.

Van orders saw a boost following scheme changes in September, with vans registered before February 2002 now eligible.

Since the changes, half of vans scrapped have been less than 10 years old and there are reports of fleet owners upgrading their entire stock.

The scrappage scheme proved most popular with car-buyers in the South East, followed by the East of England, the North West and South West, the Government said. The scheme accounted for one in five of all new car registrations in December.

Copyright © Press Association 2010

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