Drivers to keep €1,000 car bonus

DRIVERS who scrap an old car and buy a new one look set to still receive a €1,000 bonus - despite the government cutting the incentive this month.

Since January 1, the prime à la casse - a bonus towards the cost of a new car when scrapping a vehicle more than 10 years old - has been reduced from €1,000 to €700.

However a number of big car manufacturers have said they will make up the difference to customers in a bid to encourage drivers to buy a new vehicle.

France's biggest car maker, Renault, announced yesterday that it would pay the €300 difference until at least the end of February. Citroën said it would do the same.

Rival Peugeot followed, promising to match the €700 government prime for cars between eight and ten years old - meaning buyers will get €1,400.

Volkswagen says it will keep the prime à la casse at €1,000 until June. Fiat is offering a €500 "environment bonus" on new cars to make up for the drop in the official government scheme.

The prime à la casse is due to drop further, from €700 to €500, in July and €300 in January 2011 before being phased out completely.

The scheme has given a major boost to the French car industry. Some 2.27 million new cars were sold in December, up 48.6% on the same month in 2008 and the highest level in almost 20 years.

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