RTTNews - Monday, the UK government launched its car scrappage scheme that allows drivers to scrap their cars that are more than 10 years old, in return for a GBP 2,000 discount on a new car.

The GBP 300 million-scrappage scheme, announced in last month's Budget, is intended to boost consumer confidence and kick-start demand for new cars. Motorists will be spoilt for choice with 38 manufacturers taking part in the scheme covering all the major brands, the Department for Business, Enterprise and Regulatory Reform said in a statement.

The GBP 2,000 grant is made up of GBP 1,000 from government with matched funding from vehicle manufacturers. The scheme will operate until March 2010 or until the government funding has been exhausted.

Business Secretary Peter Mandelson said, The scheme has been met with a flood of enquiries from customers. It will provide a boost to the industry and kick-start sales.

The Society of Motor Manufacturers and Traders Limited have welcomed the scheme saying that the proposal would help to restore sales volume that fell for the eleventh consecutive month in April.

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