Scheme sees 50,000 orders in its first month – but most are small, low-priced cars.

The Government’s car scrappage scheme has been running a month now. And the signs are that is has proved a hit with buyers – with dealers reporting busier showrooms and over 50,000 cars ordered.

The scheme offers savings of £2000 on new cars when a car or van that’s at least 10 years old is traded in. But while just about every make is offering its full model range under the scheme – and all are benefitting – it looks that niche brands are emerging as the ones showing biggest gains. Suzuki, Kia and Hyundai, which each offer small, cheap cars, are showing strong gains. Suzuki reports 2100 orders resulting from the scheme, Kia has 7000, and Hyundai, 8000.

A survey of dealers by motor trade publication Automotive Management reveals that almost half or cars ordered retail for £8000 or less, while three-quarters cost £10,000 or less. Two-thirds have engines of between 1.0 and 1.3 litres. Onyl a quarter of buyers take out a loan to pay for the car, with most paying cash from savings.

The scheme is intended to run until next February. It could end sooner, however, if the £300m that the Government has set aside for the scheme is used up. Car scrappage: your questions answered – click here