Car Scrappage Scheme

This was a UK government vehicle discount scheme introduced in the first half of 2009. A vehicle must have been registered to the driver for 12 months before a new one was ordered. The aim of the initiative was to encourage people to buy new vehicles in a bid to prop up the then struggling UK car manufacturing sector.

The government and participating manufacturers provided £2,000 towards the cost of a new vehicle in exchange for scrapping an old one. A budget of £300 million was initially set aside by the government for the programme, which ran until the end of March 2010.

It is not known when or if a similar scheme will be introduced again in the future as UK carmakers have since recovered from the downturn.