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UK CAR SCRAPPAGE SCHEME INFORMATION

Motorists buying new cars will get a £2,000 discount if they trade in for cars over 10 years old to be scrapped which will run until March 2010 to help the struggling UK car industry. The UK government wants people to scrap their old cars and buy new ones. The chancellor announced a new scheme in the Budget to offer a £2,000 discount when a car which is 10 years old or more is scrapped and a new car bought. Is the car scrappage scheme an affordable option for buying a new car or whether a trade in against a second hand vehicle is the better option, here are some questions and answers to assist you in understanding the new UK car scrappage scheme.



  1. What age does the old car have to be to qualify under the car scrappage scheme?
    The initial documents published with the Budget specified the car had to be registered no later than 31 July 1999 but it also includes all cars with a T prefix number-plate. However, the T prefix was used until 31 August 1999, potentially excluding many vehicles registered in that month. No clarification has yet been issued. Until one is, assume that the old vehicle must have been registered by 31 July 1999 at the latest.

  2. Can I buy a demonstration car under the new car scrappage scheme?
    The car you buy must be brand new and you must be the first registered keeper. If the garage has already registered it you cannot buy it under the scrappage scheme. The car must have a UK specification.

  3. Can I use my son or daughter's old car to benefit me having a new car under the scrappage scheme?
    The person buying the new car also has to be the registered keeper of the new vehicle.
    You either have to be the owner of your son or daughter's car. Or you have to give them the money to buy the new car.

  4. Can I buy an old car and then use it to get £2,000 towards a new car?
    No. You must have owned the old car for 12 whole calendar months before the new car is ordered.

  5. Is the £2,000 on top of any other discount or the trade-in value of the old car?
    No. The rule is that the garage must offer you at least a £2,000 discount, half of which the manufacturer will pay. The government provides the other half. It is up to the dealer to offer you more than that but the rest will not be subsidised.
    As new car sales are down it is worth negotiating for a further discount.

  6. Can the garage sell my old car back to me?
    No. The old car cannot be sold to anyone. It has to be scrapped and the government will be checking that they are.

  7. I have a van for my business. Can I use that in the car scrappage scheme?
    All private and business vehicles can participate in the scheme as long as they fulfil the other conditions.

  8. Can I swap two old cars and get £4,000 off?
    No. You can use two qualifying old cars to buy two new cars. But you cannot use more than one old car for one new car.

  9. Will my old vehicle qualify if it is off the road?
    Any vehicle must be legal to qualify. So if it is legally off the road with a valid Statutory Off Road Notification (SORN) document then it will qualify. In that case it does not need to have an MOT certificate or insurance. A vehicle that is taxed must be insured and have a valid MOT. Other vehicles will not be eligible.

  10. Do I have to buy a new vehicle which has low emissions?
    No. You can buy any new car as long as the manufacturer is participating in the scheme. No information is available yet as to which manufacturers are but it is expected that all the major mainstream manufacturers will take part.

  11. When does the car scrappage scheme begin?
    It will start around the middle of May and you must wait until it starts to order your new car.
    The scheme will end when the £300m set aside runs out - which is 300,000 vehicles scrapped - or the end of February, whichever happens first.

  12. How do I get the discount under the UK car scrappage scheme?
    The dealer will sort out all the paperwork and the £2,000 discount will come straight off the price of the car.

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