It was announced this week that the Government’s Scrappage Incentive Scheme is to be extended by one month. The scheme will now end on March 31 or when the funding runs out. The move was said to have come after ‘intensive lobbying’ by the National Franchised Dealers Association.

The Government said the extension would give manufacturers and dealers “more time to prepare for and operate the exit phase of the scheme”. It also means scrappage will be a sales tool for dealers during the March plate change.

The Department for Business, Innovation and Skills stated that the remaining scrappage funding is to be allocated to manufacturers based on their retail market share and not their share of scrappage sales.