GOVERNMENT officials have confirmed that the scrappage scheme has been extended.

The scheme will now run for an extra month and finish at the end of March.

Lord Mandelson said this was to allow car dealers ‘more time to prepare for and operate the exit phase of the scheme.’

It will still finish early if the money runs out though, he added – NO new funds have been added into the scheme.

‘Against the background of the economic downturn, said Mandelson, ‘the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.

‘If you’re considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited.

‘In the final stages of the scrappage scheme manufacturers will be apportioned order quotas to aid an orderly close down.’