Scrappage Scheme ExtendedSeptember 28, 2009
Government has today announced an extension to the scrappage scheme.
much lobbying from the car industry, an extra £100 million has been made
227,750 orders have been placed through the scheme. The increased funding
enables the scheme to fund a further 100,000 vehicles, bringing the total
budget to £400 million and covering up to 400,000 vehicles in total. The
extension continues as a Government and manufacturer partnership, with matched
funding providing the £2,000 discount for each scrappage order.
increased funding the Government will also work with manufacturers to extend
the benefits to van owners with vehicles over 8 years old rather than the current
10 year requirement.
will also get a boost, with the age qualification changed by 6 months to extend
the benefits to cars registered on or before 29 Feb 2000 (V registration). The
scheme will come to an end in February 2010 or when the funding runs out,
whichever is sooner.
sees this as a positive move, as the statistics show that the majority of cars
that have been bought through the scheme have generally been the manufacturers’
more economical models. However placing a CO2 limit on the cars that could be
bought would have provided more incentive and awareness to buy a low-CO2
vehicle. And we’re obviously not suggesting that anyone would want to scrap an old Land Rover…
figures have reflected the positive impacts of the scheme both within and
beyond the automotive sector, with manufacturing benefitting and the whole
supply chain, from plastics and steel, to individual component manufacturers
receiving a boost.
the announcement of an extension to the vehicle scrappage scheme, SMMT chief
executive Paul Everitt said, “Lord Mandelson’s announcement of an extension to
the car scrappage scheme is an extremely important decision that will inspire
consumer and business confidence. It will help to stimulate demand, giving more
consumers access to it, and create a bridge to a period when economic growth is
strengthened and more sustainable.
additional 100,000 vehicles should help to counter the likely negative impacts
of a return to the higher rate of VAT and the introduction of first year VED
Secretary Lord Mandelson said: “The sector has been strongly affected by the
recession, but the scrappage scheme has delivered a boost to manufacturers and
the supply chain. We have listened to the concerns of manufacturers and are
increasing the funding of the scheme to £400m.
“But we must
make sure that the help we do offer is targeted, limited and proportionate.
This is not a blank cheque to the auto manufacturers but recognition that there
is still a short term challenge to boost demand and confidence in the sector.”
The dealers will
do all the paperwork for motorists participating in the scheme and arrange for
the old vehicle to be scrapped. The dealer will check that the vehicle being
traded in and the new one being bought qualify under the scheme.
* Passenger car or small
van not exceeding 3.5 tonnes
* Registered in United
Kingdom on or before 31 August 1999, although this will now change
registered with DVLA or DVA to the registered keeper making the application
* Vehicle has been
registered to the customer continuously for 12 calendar months before the order
date of the new vehicle
* Vehicle has a UK address
on the registration certificate (V5C)
* Vehicle has a current MOT
test certificate before the date of order for the new vehicle, or one that has
expired no more than 14 days before the order for a new vehicle was placed
* Vehicle is taxed, or has
a tax disc that has expired within 14 days of the order and insured
* Passenger car or small
van up to 3.5 tonnes
* First registered in the
UK on or after the date the scrappage scheme is launched and declared new at
first registration in the UK with no former keepers
* UK specification vehicle
(can include left-hand drive vehicles that meet UK specifications)
* Registered to the same
registered keeper as the registered keeper of the eligible vehicle to be