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Car scrappage quota introduced
Monday January 18th 2010
Motorists are waiting to see what impact a new quota system for the car scrappage scheme has on their policies, in particularly their car value protector schemes.
The scheme is being introduced after it was revealed more than three quarters of the overall £400 million budget was used up.
Funding for fewer than 82,000 new vehicle orders is left, with the money due to run out at the end of February.
The Government's Business Department will allocate order quotas to manufacturers, based on brand popularity, to try to ensure a "smooth closing" of the scheme.
Figures showed that 318,628 new vehicle orders have been taken through the scheme, with buyers receiving £2,000 for trade-ins.
Van orders also rose, following the changes made to the scheme in September, with vans registered before February 2002 now eligible.
Since the changes half of all vans scrapped have been less than 10 years old and there have been reports of entire van fleet stocks being upgraded.
The scheme proved most popular in the South East, followed by the East of England, the North West and South West, the Government said. It accounted for one in five of all new car registrations in December.
Copyright © Press Association 2010
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