Over 60,000 new cars ordered through UK Scrappage Scheme

Since the UK scrappage scheme was detailed in the 2009 budget, new government figures reflecting data from the end of April when the scheme was announced, to 7 June, shows that more than 60,000 orders for new cars have been placed, showing the success of the scheme through a clear spike in sales.

Under the new scheme, car buyers are given a £2,000 discount on new cars in exchange for scrapping one aged at least 10 years.

According to Business Secretary Lord Mandelson, the scheme has given the car-making industry the boost it needs and should continue to help stimulate the economy.

"Consumers know a good deal when they see one. These figures speak for themselves," he said.

"Car manufacturers continue to report on the success of the scheme with rising sales. It is the boost that the industry needs," he added.

The scheme will continue to run until March 2010 and to be eligible for the discount, buyers must be able to prove that they were the registered keeper of the car being scrapped for at least 12 months. This is to prevent people from simply buying an 'old banger' then using it to benefit from the scheme.

The discount offered will be split up by the government and the manufacturers, each contributing 50%. The government put £300m aside to fund its part in the scheme, potentially benefiting up to 300,000 customers.

This is not the first time a scheme like this has been introduced, with a similar strategy launched in Germany earlier this year.