The car scrappage scheme is being deemed a success by the Government as figures showed 35,000 vehicles have been ordered since the launch earlier this month.
The £300m scheme was introduced by the government to stimulate the UK’s ailing car industry, which had seen orders slump since the start of the credit crunch. In March, new car sales were down 30% on the same period last year; they had been forecast to dip to 1.72m in 2009.
Motorists will receive £2,000 if they sell their old car and buy a new model. The government said one in five new car buyers had taken advantage of the scrappage scheme, which offers drivers a £2,000 discount on a new car if they trade in a vehicle that is at least 10 years old.
The scheme will expire in March next year and follows similar moves by major European countries, including France and Germany.
The car industry will have to contribute £1,000 to the grant and it will not be restricted to greener vehicles. The “cash for clunkers” programme will end earlier than expected if the money runs out before March.
How to take advantage of the vehicle discount scheme
Contact your local dealer to see if they have joined the vehicle discount 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 vehicle discount scheme
The vehicle you trade in and the new vehicle you want to buy must meet certain conditions for you to be able to get the discount.
Your vehicle
The vehicle you are trading in must:
- be a car or small van weighing up to 3,500 kilograms (kg)
- be registered in the United Kingdom (UK) on or before 31 August 1999
- be registered with the Driver and Vehicle Licensing Agency (DVLA) or Driver and Vehicle Agency (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 date of order for the new vehicle
- have a current tax disc 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 weighing up to 3,500 kg
- first registered in the UK on or after mid May 2009
- declared new at first registration in the UK with no former keepers
- when trading in your old vehicle for a new vehicle the registered keeper for both vehicles must be the same.
For more information phone Stephanie Pettitt on 01305 769739 or visit
June 1, 2009
Finance News