5 Things You Need To Know About The Scrappage Scheme

5 Things You Need To Know About The Scrappage Scheme

1. What’s all the fuss about this ‘scrappage
scheme’?

The vehicle discount scheme, also known as the ‘scrappage scheme,’ began in May 2009.  The primary objective of the programme is to
provide immediate support to boost the car industry and its supply chain during
the downturn and stimulate demand.   A corollary objective is to get older
vehicles off the road and encourage consumers to invest in new, safer, and more
environmentally friendly models.

2. Okay.  So far, so good – it’s good for the economy and
the environment – but what do I get out of it?

Well, subject to certain terms and conditions (see below), the scheme offers
a £2,000 discount when you trade in your existing vehicle and buy a new one. 
The subsidy comprises £1,000 from the Government with matched funding from
vehicle manufacturers.  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 it.

Note, as an added incentive to buy a new car, many manufacturers
participating in the scheme are actually offering more than
the required £1,000 matching contribution.

3. The downturn won’t last forever (hopefully), so when does the
scheme end?

It will last until March 2010 or once 300,000 customers have benefited from
it (whichever is earliest).  Figures released on Monday showed that 154,927
people have already bought  under the programme.  

If the scheme maintains its current trajectory, it will end mid-autumn, well
before March 2010 – so act fast!

4. Which vehicles can be traded in & bought under the
scheme?

Current vehicle

As regards your current vehicle, the scheme is limited to: (1) a car or small
van with a maximum weight of 3,500 kg; (2) registered in the UK on or before 31
August 1999; (3) currently registered with the or in your name; (4) registered to
you continuously for 12 months before you order the new vehicle; (5) with a UK
address on its registration (V5C); (6) a current test certificate before you order the new vehicle (or within 14
days of expiry at the time of order); (7) a current tax disc when you order the
new vehicle (or within 14 days of expiry at the time of order); and (8) insured
when the order for the new vehicle is placed.

New vehicle

As for the car you intend to buy, it must be: (1) a car or small van with a
maximum weight of 3,500 kg; (2) first registered in the UK on or after mid-May
2009; (3) declared new at first registration in the UK with no former owners;
(4) designated a UK specification vehicle; and (5) registered to the same
registered owner as the registered owner of the vehicle to be scrapped (i.e.,
you).

5. Alright, I’m sold!  What do I need to do to take advantage of
the scheme?

Contact your local dealer and ask them whether they have signed up to the
scheme.  They will do all the paperwork and arrange for the old vehicle to be
scrapped.  They will also check that your current vehicle and the vehicle you
intend to buy both meet the rules of the scheme.