Budget delivers much needed boost to Car Manufacturers

Car Scrappage Scheme has been set at the Budget

It has been confirmed that the car scrappage scheme will be launched next month in order to help the UK car industry.

The new scheme will provide motorists with a £2,000 discount on new cars bought when they trade in cars bought over 10 years ago. The initiative will be time limited until March 2010.

Darling said: “I want to help the UK’s automotives industry which has been one of Britain’s success stories over the last decade but the loss of the consumer confidence in the credit crunch has led to a sharp fall in vehicle sales around the world.”

The key facts of the scheme are
- The £2,000 saving will be 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 scheme is expected to be introduced in mid-May.
- The scheme will run until the start of March 2010, or until all of the government funding has been used.
- The discount will be 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 31 July 1999 and have a current MOT test certificate.
- Scrappage savings apply to commercial vans (up to 3.5 tonnes) as well as cars.
- The scheme will be audited by the DVLA.
- Scrappage trade-ins can only be made against new cars.

Check Scrappage scheme eligibility now

By Geraldine Ashton Green, motoring.co.uk

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Your Comments

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kam raz posted 10.43 PM Thu 14 May 2009
First the government wants to try and reduce the amount of cars on the road, then they attempt to keep the car companies going by funding them? spend money getting rid of them, and at the same time spend money to keep them, whats goin on :S
angela wind posted 4.37 PM Sun 10 May 2009
The car showrooms are miving the goal posts at a rapid rate too, advertise online and x price and when you get to showrooms, they have conveniently ran out of that particular car, so you have yo upgrade to y price to still qualify, load of rubbish, its all a con. Have tried somewhere else, and if this works out i will be amazed !
Freddie Love posted 5.27 AM Wed 06 May 2009
In response to Mike Pilcher.
The whole point is to hope to encourage people with older polluting cars which they would otherwise continue using to get a modern less polluting car.
Why on earth offer it to those with MOT failures?
YES it is yet another of this governments big cons. Presented as them giving away £2000 but depending on the motor trade funding half of it.!
Rick Fry posted 10.33 PM Thu 30 Apr 2009
Has anyone asked the question how many people with ten year old cars trade them in against a new car?
Complete waste of time.
john brown posted 5.29 PM Thu 30 Apr 2009
my car will be 10years old in january 2010 will it be eligable as the closing date is march 2010.if not? why not?