Scrappage Allowance Facts

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Scrappage Scheme Facts

  • In his Budget statement to the House of Commons on 22 April 2009, Chancellor of the Exchequer Alistair Darling announced the introduction of scrappage incentive scheme.
  • A total of £2,000 will be offered in a “cash-for-scrap” scheme for 10-year-old, or older, cars.
  • The £2,000 saving is made up of £1,000 from the government and £1,000 from the relevant car manufacturer.
  • Participation in the scrappage scheme by specific car manufacturers is voluntary.
  • The funding was originally made up of £300million from the government – a figure matched by manufacturers participating in the scheme, but in September that was extended by another £100 million to cover a further 100,000 vehicles.
  • The scheme began operating in May 09.
  • The scheme is expected to run until 28th February 2010, or until all of the government funding has been used.
  • The discount is offered to consumers buying a new vehicle to replace a vehicle which they have owned for more than twelve months.
  • The registered keeper must have a UK address.
  • Eligible vehicles must have been first registered in the UK on or before 29th February 2000 and have a current MOT test certificate.
  • Scrappage savings also apply to commercial vans (up to 3.5 tonnes) which are eight years old plus.
  • The scheme is audited by the DVLA.
  • Scrappage trade-ins can only be made against new cars.