The Chancellors car scrappage scheme has been largely welcomed by the automotive industry but questions linger over how effective it is likely to be.
Under the new rules, motorists will receive a 2,000 discount on new cars when trading in vehicles over ten years old, with half being provided by the car manufacturers and the remaining 1,000 supplied by the government. The scheme will be implemented from next month until March 2010, and the industry is hoping it will stimulate demand in a waning marketplace.
This is good news for consumers and will get people back into showrooms, kick-starting demand in the market, said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT).
However, given that approximately four fifths of the cars sold in Britain are im...