Section Menu

Vehicle Scrappage Scheme

By 31 January, BIS had received 339,250 orders for new vehicles under the scrappage scheme.

Vehicle Scrappage Scheme – final stage and last date for orders

On 4 February the Government announced that an extra month has been added to the deadline for the Government Scrappage scheme to help manufacturers and dealers prepare for and operate the final stage of the Scheme. Subject to agreement by manufacturers (consumers should check with dealers that the relevant manufacturer has agreed) the scheme will now run until the end of March or until the money runs out, whichever is the sooner. The budget remains the same and there are no changes to the eligibility criteria.

Vehicle Scrappage Scheme extended - September 2009 announcement

On 28 September 2009 the Government announced plans for a further £100 million funding for the scheme. This means that the scheme will cover up to 400,000 vehicles. Eligibility criteria will remain the same with the exception of the date of first UK registration which will be changed to 29 February 2000, or before, for cars and 28 February 2002, or before, for vans respectively. These changes on scheme eligibility are now in effect. Consumers should check with their dealers that they have started implementing the new terms. 

See below for information on the background and rules of the scheme.

Background

The Chancellor announced in the Budget on 22nd April 2009, a voluntary discount scheme under which motor dealers will give motorists £2,000 or more towards a new vehicle if they trade in a car or van over 10 years old for scrap.

The scheme is intended to provide a boost to demand and immediate support on a short-term basis to the car industry and its supply chain in the wake of falling sales. It will also get older vehicles off the road and encourage consumers to invest in new, safer and potentially more environmentally friendly models.

What is the scheme?

Government will provide a £1,000 incentive, with matched funding from vehicle manufacturers, for consumers to replace their 10 year old or older vehicle (8 years in the case of vans) with a brand new vehicle. The old vehicle must have been registered in the UK to the consumer for at least 12 months. The scheme applies to commercial vans (up to 3.5 tonnes) as well as cars.

How long will the scheme operate?

The scheme was launched on 18 May 2009 and will last until end March 2010, or sooner if the government funding has been used. It was announced on 28th September that funding is to be increased and will be available to scrap up to 400,000 vehicles, with £400m provided by Government and matched by support from vehicle manufacturers.

Which manufacturers are taking part?

Thirty eight manufacturers (forty one marques/brands) have signed up to take part in the scheme:

Allied Vehicles, Audi, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks, Rolls Royce, SAAB, SEAT, SECMA UK, Skoda, Ssangyong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo.

How to take advantage of the Government’s scrappage scheme?

Contact your local dealer to ask if they are operating the scrappage scheme. They will check that your vehicle and the new vehicle you want to buy both meet the rules of the scheme. When the sale is agreed, the dealer will sort out the paperwork and arrange for your vehicle to be scrapped.

The discount is deducted from the price you pay for the new vehicle and will be shown on your invoice when you take delivery of your new vehicle.

The rules of the scrappage scheme

Your vehicle

The vehicle you trade in must:

• be a car or small van not exceeding 3.5 tonnes
• be registered in United Kingdom on or before 29 February 2000 (cars) or 28 February 2002 (vans) (vehicle categories M1 and N1 respectively)
• be registered with the Driver and Vehicle Licensing Agency (DVLA) or Driver and Vehicle Agency in Northern Ireland (DVA) 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 the date of order for the new vehicle (or that has expired no earlier than 14 days before the time of order)
• have a current tax disc before the date of order for the new vehicle (or that has expired no earlier than 14 days before the time of order)
• be insured when the order for the new vehicle is placed

The new vehicle

The new vehicle you want to buy must be:

• a car or small van not exceeding 3.5 tonnes
• first registered in the UK on or after the 18 May 2009
• declared new at first registration in the UK with no former keepers
• a UK specification vehicle
• first registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped

Further Information

For further information please contact us:

Phone BIS on 020 7215 5000, or

Email the BIS Scrappage Team at: scrappage@bis.gsi.gov.uk

Last updated 8 February 2010