What’s It All About?

The UK Government have announced in the 2009 Budget to run and provide a £300m subsidy for a car scrappage scheme, which is to run from May 18th 2009 until March 2010.

This will enable British car owners to receive a total of £2,000 subsidy towards the purchase of new car (or van) when they trade in their 10 year old (or older) car or van for scrappage.

The British Government are providing a subsidy £1,000 together with the additional £1,000 sum offered by the approved car dealer. The car scrappage scheme may not involve all car manufacturers and dealers is voluntary, however a number of established and niche car manufacturers and dealers are already taking advantage of the growing interest by creating their own car scrappage schemes.

Car Scrappage Scheme – Basic Terms and Conditions for a +10 year old vehicle traded in for scrappage

* Passenger car (M1) or commercial vehicle up to 3.5 tonnes (N1 class 1)
* First registered in United Kingdom on or before 31 August 1999
* Has a current tax disc and a current MOT test certificate OR has a current tax disc and a current Hackney Carriage Licence OR has a MOT certificate that has expired no earlier than 14 days before the date of the new vehicle order
* Is not an insurance write-off
* The Purchaser (of the new vehicle) is the registered keeper of the vehicle for scrappage and has agreed that it will be scrapped upon delivery of the new vehicle
* The registered keeper has been the registered keeper of the old vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle
* Vehicle must be clear of Finance

Car Scrappage Scheme – Basic Terms and Conditions for the new purchased car or van

* Passenger car (M1) or commercial vehicle up to 3.5 tonnes (N1 class 1)
* Ordered on or after 23 April 2009 and first registered in the UK on or after the date the Car Scrappage Scheme is launched (18 May 2009) and declared new at first registration in the UK with no former keepers
* UK specification vehicle
* Registered to the same name and address as the registered keeper of the eligible vehicle to be scrapped
* Maximum of 4 months from order date to registration of the new vehicle
* All vehicles using the scheme must be roadworthy, with a MoT valid within 14 days of the ordering of the new vehicle. (Some dealerships may allow some leeway.)  Source BERR.

The following additional guidelines have been provided by the Government;

* Scrappage support is not available on parallel/grey imports
* Scrapped cars or vans registered in a Retailer’s own name are ineligible
* There is no limit to the number of new vehicles an individual can buy through the Car Scrappage Scheme but only one vehicle for scrap can be used for each new vehicle purchased
* A car can be scrapped against a new van purchase, or vice versa
* If the vehicle to be scrapped is stolen or written off between new vehicle order date and delivery date then it is not eligible for the Car Scrappage Scheme

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