What is the UK car scrappage scheme?

In the 2009 budget review Alistair Darling confirmed a £2,000 Government Scrappage Scheme would be implemented. Vehicles over ten years old would receive £2,000 when traded in for a new vehicle.

How will the scheme work?

The vehicle Scrappage Scheme is a voluntary scheme for manufacturers. If a manufacturer joins the Scrappage Scheme they'll give you £2,000 off a new vehicle if you let them scrap your old one. The car scrapping scheme will run from May 18th 2009 until March 2010, or until the Government’s fixed budget of £300 million runs out, so there is limited availability.

The vehicle you trade in must:

• be a car or small van weighing up to 3,500 kg
• be first registered in the United Kingdom (UK) on or before 31 August 1999 either be registered or have a SORN (Statutory Off Road Notification)
• with the Driver and Vehicle Licensing Agency (DVLA) in your name
• have been registered to you continuously for 12 calendar months before the order date of the new vehicle
• have a UK address on the registration certificate (V5C)
• have a current MOT test certificate before date of order for the new vehicle

The new vehicle you want to buy must be:

• a car or small van weighing up to 3,500 kg
• first registered in the UK on or after 18 May 2009
• declared new at first registration in the UK with no former keepers

Why has the scheme been introduced?

It is intended to boost the UK car industry, which has been hard hit by the global recession. Similar car scrappage programmes have already been successfully launched in other European markets including Germany, France & Italy.

Other benefits to the scheme are the reduced CO² emissions and improved safety features available with new vehicles.

Full budget statement (section 4.16)
To give a boost to the car industry during the current downturn, the Government announces the introduction of a vehicle scrappage scheme. A discount of £2,000 will be offered to consumers buying a new vehicle to replace a vehicle more than ten years old which they have owned for more than twelve months. The Government will set aside £300 million for this car scrapping scheme with funding matched by manufacturers participating in the scheme. The Government will work with industry to introduce the scheme next month. The scheme will end by the start of March 2010, or when funding for the car scrapping scheme has been used if earlier.

UK Motoring News :: UKcars4sale