UK will get scrappage scheme starting in May
The Chancellor Alistair Darling has announced in his budget speech that the the UK will introduce a “car scrappage scheme”. The scheme, which will start in May and run until March 2010, will offer a £2,000 incentive to drivers of vehicles over 10 years old to get them into newer, more efficient, less poluting vehicles. It is hoped that this will be a massive boost to the new car market which was down over 30% in March’s plate change.
The government will provide £300 million of funding and the scheme’s incentive will be split 50/50 with the car industry. As a result, car manufacturers must sign up to be part of the scheme and are not obliged to take part. Dealers of participating manufacturers will be required to do all the paperwork for the car buyer, and arrange for the old vehicle to be scrapped.
The old vehicle being scrapped must be a passenger car or small van up to 3.5 tonnes, registered in the UK on or before 31 July 1999, currently registered with the DVLA to a UK-domiciled registered keeper making the application or on a SORN notice, have a current MOT test certificate, and have been continuously registered to the owner for the 12 months precedeing the purchase.
The new vehicle must be a passenger car or small van up to 3.5 tons, first registered in the UK on or after the date the scrappage scheme is launched and be the first registration for the car, be a UK specification car and registered to the same registered keeper as the vehicle being scrapped.
There will be no C02 restrictions on the new cars in order to help sales of cars from luxury manufacturers – particularly Jaguar Land Rover – and the scheme is scheduled to close in March 2010.
The Motor Trade Insider Guide To Buying New Cars
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According to recent research used car buyers are most likely to buy a blue or black 5 door hatchback which is 3 years or older. Does that sound like you? 
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Theres a surprise this mob of browns have a half baked headline grabbing scheme that will not help low income people who are driving old ‘nails’ because they cant afford anything else,so who is going to lend them the other £7000 to buy them a new car and will they be able to pay it anyway,typical BS and for someone who has a £100 car which he can now effectivley get £2000 for surely its just a tease,because it only worth more if he buys a brand newone!!!i,m glad i ride a bike
Thats very true Craig I couldn’t believe it when I heard him (Darling) on the radio this morning insisting this was a worthy stimulus. Who is he kidding? Even for the driver of a 99S Mondeo that’s just eligible for this scheme, will not be stepping up to pay £18000 for a brand new one only to see it depreciate by £8000 in the first year! In any case the Mondeo owner will currently get £1500 in part exchange for his car against a new one regardless of the scrappage scheme. The driver of a rusty 1990 Escort who will be the only financial beneficiary of this scheme, I bet he’s jumping for joy to think his car is worth £2000, if only he had £10000 in his pocket to blow on a new car… This idea is from the mad hatters tea party, it is absolute nonsense and helps no-one.
yeah but at least people trading in these scrappers can take advantage of the finance facilities on offer,knee cap finance at 35% apr anyone!!! there is no good news it will probably just help wealth people get rid of the kids cars so they can have anotther new car on the drive cos they the only ones who can afford this!!