What is the Scrappage Scheme?
The system enables owners of cars that are 10 or more years old to hand the car over for scrapping to receive a substantial discount off a brand new model.
This discount of at least £2,000 is picked up between the car manufacturer and Government.
This has been designed to reduce the number of cars on the road that have high emissions, usually associated with older vehicles, and to give a 'shot in the arm' for new car sales across the UK that have suffered in the recent financial crisis.
Many would argue that the impact of scrapping a semi-decent car and building a brand new one outweighs the environmental benefit advertised by the scheme.
The scheme is expected to run until October, however the motoring industry has called for this to be extended like it has been in Germany, which has seen a large spike in new car sales due to a similar strategy.
The scheme has been linked with an increase in 'mini car' sales.
The Ford Fiesta, Vauxall Corsa, Mini and Volkswagen Golf were all top-selling cars in June.
Foreign models such as Hyundai and Kia have also seen increased sales due to the scheme - mostly due to increased scrappage discounts offered by the brand, but also due to the current trend of cheaper brands across the retail sector.
It is yet to be seen if the scheme has lead to increased sales in other markets such as roadside assistance or cheap car insurance, or whether these markets will offer similar incentives for adopters of the scrappage discount.
This discount of at least £2,000 is picked up between the car manufacturer and Government.
This has been designed to reduce the number of cars on the road that have high emissions, usually associated with older vehicles, and to give a 'shot in the arm' for new car sales across the UK that have suffered in the recent financial crisis.
Many would argue that the impact of scrapping a semi-decent car and building a brand new one outweighs the environmental benefit advertised by the scheme.
The scheme is expected to run until October, however the motoring industry has called for this to be extended like it has been in Germany, which has seen a large spike in new car sales due to a similar strategy.
The scheme has been linked with an increase in 'mini car' sales.
The Ford Fiesta, Vauxall Corsa, Mini and Volkswagen Golf were all top-selling cars in June.
Foreign models such as Hyundai and Kia have also seen increased sales due to the scheme - mostly due to increased scrappage discounts offered by the brand, but also due to the current trend of cheaper brands across the retail sector.
It is yet to be seen if the scheme has lead to increased sales in other markets such as roadside assistance or cheap car insurance, or whether these markets will offer similar incentives for adopters of the scrappage discount.
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