UK Car Scrappage Scheme

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Car Scrappage Scheme

The car scrappage scheme is a Government initiative to encourage the sale of new cars.

How does the car scrappage scheme work?

The car scrappage scheme is entirely voluntary and is open to all manufacturers of new vehicles. Under the scrappage scheme the Government and manufacturers will provide £2,000 off a new vehicle for scrapping an old one. The vehicle scrapping scheme has been in effect from May, and will run until March 2010. However, if the Government budget of £300 million runs out sooner, the scheme will end.

Can I use the vehicle scrappage scheme?

There are restrictions on eligibility for the car scrappage scheme. To be eligible, the vehicle being traded in must fulfil certain criteria. You must:

• Be registered in the UK on or before 31st August 1999
• Either be registered or have a SORN
• Have a car or small van with a maximum weight limit of 3,500 Kg
• Have been registered to the driver for 12 calendar months before the order date of the new vehicle
• Display a UK address on the registration certificate
• Hold a valid MOT test certificate

What can I get using the car scrappage scheme?

• Vehicles including cars and smalls vans up to 3,500 kg
• Cars registered in the UK on or after 18th May 2009
• Vehicles declared new at first registration in the UK, with no previous owners

Why is the car scrappage scheme being used in the UK?

The aim of the vehicle scrappage scheme is to aid the struggling UK car industry. The UK is by no means a pilot study, with similar car scrappage schemes successful in Germany and other European markets. Furthermore, new vehicles have lower CO2 emissions and are generally more road-safe.

Where is the money for the vehicle scrapping scheme coming from?

The Government is putting £300 million into the car scrapping scheme, with funding also supplied by participating manufacturers.