Spain has decided to extend its version of the scrappage scheme, to continue support for car industry.
Spanish industry minister, Miguel Sebastian announced an extension of the Plan 200E scheme earlier this week, according to Costa News.
Under the Spanish system, motorists can buy a new or used car up to five years old by scrapping a car more than ten years old and with a minimum mileage of 250,000 kilometres. In return, the buyer receives a minimum of €2,000 slashed off the price of their new purchase.
Since the scheme was first launched in May 2009, it has been credited with turning a projected 50 per cent drop in car sales into a 40 per cent rise throughout the year.
According to industry experts, the scheme which will run until the €100 million assigned to the scheme runs out, has so far led to a C02 emission reduction of 180,000 tonnes and a 75 million litre saving in fuel.
The British Scrappage Scheme will run until 28 February 2010, but will close sooner if the final £100 million fund for the scheme runs out.
Source: Costa News
