The scrappage scheme entitles up to 300,000 UK consumers to a grant of £2000 for the purchase of a new car if they trade in a 10-year-old vehicle they have owned for a minimum of 12 months.
Latest figures show that as many as 35,000 new cars were bought under the initiative in just two weeks, which means the money could run out by mid-august.
However, despite industry optimism over the scrappage scheme, new car registrations in May were still down nearly 25% year-on-year, according to the Society for Motor Manufacturers and Traders (SMMT).
A handful of marques saw a rise in sales, including 20% growth at Kia and a 37% increase at Hyundai, which has marketed aggressively around the scrappage scheme. However, mass market leaders such as Ford and VW were down 16% and 28% respectively.
Vauxhall, which is set to be sold by troubled US car giant General Motors, suffered a hugely disappointing month thanks to low consumer confidence, with sales tumbling 40% year-on-year.
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