The introduction of the government’s scrappage scheme has had a greater effect on the economy than just stimulating the sale of new cars, according to UK Metal Recycling Limited. The Wiltshire based scrap metal and recycling company has seen a marked increase in turnover in the last year directly as a result of the new scheme. When car owners agree to trade their 10 year old car for a new vehicle under the scrappage scheme, the dealer cannot resell the trade in car as second hand, but must dispose of it through an Authorised Treatment Facility (ATF), who issue a Certificate of Destruction. To minimize overheads, most main dealers will contract an ATF to collect and dispose of the old cars â€œScrap cars have a greater intrinsic worth than just the scrap metal value.â€ said Jonathon Tarr of UK Metals. â€œMost of the cars we get under the scheme are roadworthy, so while the shell is scrapped, many of the engine components, interior fittings or electrics can be resold for parts. In some cases, the scrap value is greater than the second hand trade value, so the new scheme is a welcome addition to our business.â€ The potential profit from the increased number of cars being scrapped under the scheme is such that a specialist recovery vehicle has become a worthwhile investment. UK Metals recently bought a 7.5 tonne slide bed truck from Recovery World to cope with the increased demand for collecting scrap vehicles, and they are planning to buy a twin deck truck to add to the fleet. Recovery World also supplied a number of hire vehicles to help cope with the workload. Lynn Engledew of Recovery World commented, â€œUK Metals is not unique. We have sold quite a few of our recovery vehicles to scrap metals dealers since the government introduced the scheme. Initially it was for single deck vehicles, but with the success of the scheme, we are now selling more twin decks so dealers can halve the costs of collection, and make it even more profitable.â€ Originally planned to end in February, Lord Mandelson recently announced a further allocation of Â£100 million to extend the scrappage scheme to cover 100,000 more cars and vans.