The Government Scrappage Scheme

                                    Government Scrappage Scheme

 

 

On this page, you’ll find all the latest up to date news and information on the          Government Scrappage Scheme, eligibility, exclusions and finer points.

 

 

                                 The car scrappage scheme explained by Which?

 

As part of the 2009 budget, following months of disappointing car sales, Chancellor Alistair Darling announced plains for a new ‘scrappage incentive scheme’. It’s main aim is to help revive the beleaguered motor industry, but there’s plenty of good news for car buyers too.

 

From mid-May 2009, drivers who voluntarily scrap their old car will be offered £2,000 towards the cost of a brand-new vehicle. It’s hoped that this will not only boost the number of new cars being sold, but also help to take thousands of older, less efficient cars off the roads.

 

To qualify for the £2,000 bonus the car being scrapped must have been registered on or before 31 July 1999 and come complete with valid tax, insurance and MOT documents (or be registered as SORN). The driver applying to scrap the car must also have been its owner for at least a year.

 

The government has set aside £300m for the scheme and will give drivers £1,000 towards a new car for each old vehicle scrapped. The remaining £1,000 will come directly from vehicle manufacturers, which can choose whether or not they take part. Serveral have confirmed already that they will offer more than a £1,000, incentive on some cars, which is no surprise the given current high levels or new car discounting.

 

Environmental groups had hoped the government would only allow the £2,000 incentive to be spent on green cars but, following the Chancellor’s Budget announcement, buyers will now be able to choose any new car (or small can upto 3.5 tonnes) they wish – regardless of it’s efficiency.

 

What the Scrappage Scheme means for you;

 

If you’re driving around in an old car and already looking for something new, the scrappage incentive scheme offers a great opportunity to save some extra cash. But if not, you should thinking carefully about whether your car really needs to be scrapped.

 

Many older cars are still reliable, and the benefits of keeping hold of them can outweigh the costs of depreciation and buying a new car on dealer finance. However, most new cars are safer and more fuel efficient – not to mention more desirable – than equivalent models from the last century.

 

If you decide to take advantage of the scheme, you’ll need to act quickly. It’s set to run to March 2010, or until the government’s £300m contribution runs dry – whichever comes sooner.

 

 

                                      Eligibility for Government Scrappage Scheme

 

The government scrappage scheme does not apply to the Isle of Man and the Channel Islands.

 

In order to qualify, the trade-in vehicle for scrappage must meet following criteria;

  • Passenger car (M1) or commercial vehicle upto 3.5 tonnes (N1 class 1)
  • First registered in United Kingdom on or before 31st August 1999
  • Has a current tax disc and current MOT test certificate OR has current tax disc and has a current Hackney Carriage Licence OR has an MOT certificate that has expired no earlier than 14 days before the date of the new vehicle order
  • Is not and insurance write off
  • The purchaser (of the new vehicle) is the registered keeper of the vehicle for scrappage and has agreed that it will be scrapped upon delivery of the new vehicle
  • The registered keeper has been the registered keeper of the vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle
  • Vehicle must be clear of finance

 

In order to qualify, the new vehicle sold must meet the following criteria;

  • Passenger car (M1) or commercial vehicle up to 3.5 tonnes (N1 class 1)
  • Ordered on or after 23rd April 2009 and first registered in the UK on or after the date the Scrappage scheme is launched (currently targeted 18th May 2009) and declared new at first registration in the UK with no former keepers
  • UK specification vehicle
  • Registered to the same name and address as the registered keeper of the eligible vehicle to be scrapped
  • Maximum of 4 months from order date to registration of the new vehicle

 

In addition to the above, the following guidelines have also been provided;

  • Scrappage support is not available on parallel/grey imports
  • Scrapped cars or vans registered in a Retailer’s own name are ineligible
  • There is no limit to the number of new vehicles as individual can buy under the Scheme but only one vehicle for scrap can be used for each new vehicle purchased
  • A car can be scrapped against a new van, a van can be scrapped against a new car
  • There is no minimum retention period for the new vehicle purchased
  • If the vehicle to be scrapped is stolen or written off between new vehicle order date and delivery date then it is not eligible for the scheme
  • The scheme has been announced to run for orders until 28th February 2010 (registrations therefore to 30th June 2010) or until government funding (£300m) is exhausted, whichever is sooner

 

 

                                                Are Motability customers eligible?

 

Motability customers are eligible for the Government Scrappage Scheme where they are buying the vehicle on Hire Purchase terms and appearing as the registered keeper on the new vehicle registration certificate.

 

 

        The Budget 2009 – Which manufacturers will be taking part? – 23rd April 2009

 

                                   Courtesy of http://motortorque.askaprice.com/

 

The government’s scrappage scheme, as announced in the 2009 Budget, will provide new car buyers with a grant of £2000 to trade in a car over 10 years old.

 

However, while overseas scrappage schemes solely by governments, the UK scrappage scheme with be a joint grant of £1000 from the government and £1000 from the participating manufacturer.

 

As such, the scheme is voluntary from manufacturers and it is not a certainty that all manufacturers will choose to participate.

 

It is expected that most manufacturers will not commit to details on their scrappage scheme participation or offers until the Society of Motor Manufacturers and Traders meets with Business Secretary Peter Mandleson later this week.

 

We’ve put together a list of all the manufacturers that have indicated their intent to join the scrappage scheme, and will update this list on a regular basis.

 

Participating:

 

  • Alfa Romeo will join, making the MiTo supermini available under £9,000
  • Audi has indicated that it will join the scheme. However it is currently asking interested customers to fill in their details on its website. Audi wil not go into details of how it will participate in the scrappage scheme until it has consulted with the government.
  • Bentley says it supports the scheme in principal, though doesn’t expect it’s customers to make use of it.
  • Chevrolet backs the scheme, making a Matiz city car available for just over £4,000.
  • Citroen bsays it will support the scheme, but has concentrated on its own limited scrappage scheme so far.
  • Ford says it will join the scrappage scheme and will incentivise sales of larger cars. Ford says this could result in saving upto £4,500 on a new Mondeo.
  • BMW will join the scheme and will offer dealer incentives.
  • Fiat says it supports the scheme and will make full details available soon. It has already announced that the Fiat Panda Active Eco, which normally retails at £7,095 will be on sale for £4995 under the scheme.
  • Hyundai says it will sign upto scrappage, allowing eligible motorists to buy a new Hyundai i10 for under £5,000, or at a monthly PCP cost of £85.
  • Kia has indicated that it will participate in the scrappage scheme, and says a Picanto city car will be available for £4,195, or £10 per week with £100 deposit.
  • Taxi manufacturer LTI says it will make its TX4 black cab available under the scrappage scheme.
  • Mazda says it supports the scheme and will announce details of its participation soon.
  • Mercedes Benze says it will join the scrappage scheme. As there is no CO2 limit, Mercedes Benz’s entire range will be available to buy under the scheme.
  • Mini will participate in the scrappage scheme, but further details have yet to emerge.
  • Mitsubishi will join the scheme and is asking customer to register an interest, though no further details are available.
  • Nissan says it welcomes scrappage and will sign up. Nissan also intends to include any of its Sunderland-built models – Qashqai, Qashqai 2, Note and Micra – for owners of cars aged between 8-10 years old.
  • Peugeot has indicated that it will participate in the scheme, but it is only advertising 107, 027, 308 and Bipper small van scrappage deals on its site. So far the government has indicated that any manufacturer signing up to the scheme must make its whole range available for scrappage deals.
  • Ssangyong says it will join the scheme, which will cover its passenger and commercial vehicles.
  • Smart will participate in scrappage, with forthcoming 88g/km Smart ForTwo CDi Cabrio out in time for the scheme.
  • Skoda says it will join the scheme, but has not made a formal announcement.
  • Suzuki has indicated that is likely to join the scheme, but has not made a formal announcement.
  • Toyota says it will sign up to scrappage, and has announced plans to make British-built Auris more affordable.
  • Vauxhall will support the scheme.
  • Volkswagen says it intends to participate in scrappage but has not released any details as yet.
  • Volvo will participate in the scheme, and will offer extra incentives on its low-CO2 DRIVe models.

 

No manufacturer has ruled out joining the scrappage scheme.

 

The following manufacturers have yet to declare whether they will join the scrappage scheme.;

 

  • Aston Martin
  • Cadillac
  • Chrysler
  • Daihatsu
  • Dodge
  • Ferrari
  • Honda
  • Hummer
  • Jaguar
  • Jeep
  • Lamborghini
  • Land Rover
  • Lexus
  • Lotus
  • Maserati
  • Perodua
  • Porsche
  • Saab
  • SEAT
  • Subaru

 

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