UK Car Scrappage Scheme – How it Works…
The Department for Business Enterprise and Regulatory Reform (BERR) held a Motor Industry seminar on the 27 April 2009 detailing the key features of the UK Car Scrappage Scheme.
UK Car Scrappage Scheme £2,000 Discount
These are the notes from the official presentation to car manufacturers and dealers at this meeting…
UK Car Scrappage Scheme – Key Features
- Consumers will be offered £2,000 towards a new car or van if they trade in a 10 year old plus vehicle which they have owned for 12 months or more;
- The scrappage incentive will be made up of £1,000 from the UK Government and £1,000 from the motor industry;
- £300m will be made available to fund the scrappage scheme allowing up to 300,000 sales;
- The launch date will be mid-May;
- It will finish on the 28th February 2010 or until the funding is used up;
- There will be price transparency for consumers, dealers, manufacturers and auditors of the scrappage scheme;
- The scrappage scheme will be voluntary for manufacturers and dealers;
- The scheme will apply to all the manufacturer’s models and not just selected ones;
- There is no limit to the number of vehicles purchased per individual or business;
- The scrappage scheme discount can only be used once per vehicle purchased – i.e. you can’t trade in two qualifying vehicles against one new car and get £4,000 off the price;
- There is no restriction on the period of ownership after purchase;
- There is no restriction on scrapping a car and use the allowance against a new van or vice versa;
- Fleet and Motability customers are eligible.
Scrappage Scheme Eligibility – Old Vehicle
- Your old vehicle must be a Car or Light Commercial Vehicle not exceeding 3.5 tonnes (N1 class);
- It must be first registered in the UK before 29 February 2000 (“V” reg and earlier);
- The Claimant keeper must have been the registered keeper for at least 12 months before the new vehicle order date;
- The registered keeper must have a UK address;
- The vehicle must have a current MOT certificate;
- The vehicle must be clear of finance;
- Dealers can’t trade in their own cars;
- Stolen cars are not eligible;
- Insurance write-offs are not eligible.
Scrappage Scheme Eligibility - New Vehicle
- New Car or Light Commercial Vehicle not exceeding 3.5 tonnes;
- UK specification vehicle;
- First registered in the UK on or after the date of the launch of the scrappage scheme and declared new at first registration in the UK with no former keepers;
- It must be registered to the same keeper as the registered keeper of the vehicle to be scrapped;
Ineligible New Cars
- Used cars;
- Ex-demonstrators;
- Parallel or Grey imports;
- Orders placed before the scheme starts;
- Cars destined for resale.
How the Car Scrappage Scheme Process Works: Consumer
- There is no need for the consumer to formally register or apply to the scheme (it’s not a voucher scheme);
- The consumer can check in advance that their old vehicle meets the requirements of the scheme. Dealers will provide further advice;
- Dealers will do all the paperwork and arrange for the old vehicle to be scrapped;
- The £2,000 scrappage scheme discount must be shown on the sales invoice for the new car;
- The consumer provides proof of identity, V5C registration document for the old car and the MOT certificate;
- Consumer gives agreement for the old car to be scrapped ;
- Consumer agrees to collection and use of personal data for the vehicle scrappage discount scheme;
- Consumer agrees to be contacted by the Department of Business and Regulatory Reform (BERR) for monitoring purposes.
How the Car Scrappage Scheme Process Works: Dealer
- The Dealer will check old vehicle eligibility and customer identity details;
- The car manufacturer will be notified when the order is placed under the scrappage scheme and proposed trade-in vehicle details;
- Dealer will arrange destruction of the old vehicle through an Authorised Treatment Facility after delivery of the new vehicle and will retain a copy of the Certificate of Destruction (CoD);
- Dealer will notify the manufacturer that the transaction has been completed;
- The Scrappage Scheme discount will be shown on the consumer’s sales invoice;
- The following will be retained for audit purposes: V5 of trade-in, copy of CoD, current MOT and invoice showing discount.
How the Car Scrappage Scheme Process Works: Manufacturer
- Manufacturers will have a key role in the administration of the scheme;
- They will educate the dealer network;
- They will promote the scheme through their own advertising;
- They will ensure timely supply of vehicles;
- They will submit a weekly return to the BERR listing orders under the scrappage scheme from dealers and proposed delivery dates;
- Following the completion of a transaction, the manufacturer will submit a payment claim to the BERR (on a bi-monthly basis);
- Following payment by BERR, the manufacturer will reimburse the dealer within 10 working days;
- Manufacturers will notify the BERR on a daily basis when the receive notice that the scheme funding is running down.
How the Car Scrappage Scheme Process Works: BERR
- On receipt of the order notifications from the manufacturer’s, the BERR will update payment forecasts and check the Certificates of Destruction (CoDs);
- On receipt of a payment claim the BERR will check the details of the claim against the returns already logged;
- The BERR will check the details of the registered keeper, CoD and MOT details on the DVLA database;
- The BERR will issue payment to manufacturers within 10 working days of the submission of a claim and update expenditure forecasts;
- The BERR will notify the manufacturers when funding is running down and the cut-off point;
- An independent audit will be carried out after 2 months and at the end of the scheme;
- The BERR will carry out scheme monitoring.
If you have any questions on the scrappage scheme please post your comments below and we’ll try and answer them.
Hi, my car is a 51 reg (clssed as 02), I wanted to scrap it and get a vauxhall but vauxhall only scrap it if its 10 years old. Why do some dealers say 8 years and oters say 10? Can dealers not scrap mine at thier own discretion??
Thanks
Bhavna
My sister had an old Cleo and wanted a new(er) car. My wife was due to change hers so my sister bought my wife’s 3 year car. She gave her Cleo to her father in law because his car had just packed up. The scappage scheme came in and he went and traded it in for a brand new one – my sister lost out by just weeks! She was gutted.
I had a eligible car which sold to a trader. If I get my car back from trader, will it still be eligible for scrappage allowence???
thanks
Can I purchase a car now under the scrappage scheme but have a 2010 reg i.e have it delivered after the 1st March?
My mother-in-laws car is an X reg does it qualify
Does the garage participating in the scrappage scheme need to keep a copy of the customers driving licence for auditing purposes?I am being asked for this having changed my car in November and provided everything that was requested at the time of purchase.
Would welcome your answer.
Regards
my car is a fiesta w reg 2000 .Do i qualify for this scheme?
I have an R reg 306 which fits the scheme. I signed up to buy a new Fiat Panda on the 25th of January 2010 and gave the dealer a £300 deposit. He took all the details of my 306 and photocopied all the paperwork – at that time it had a valid MOT, insurance and tax. The MOT and insurance have now expired (today – the 10.02.10). I got my reminder for the tax this morning as it too runs out at the end of the month. I called the dealer this morning to tell him I was about to sorn the vehicle and he said I can’t – there’s a three month delay in getting the Panda and my intention was to keep the 306 off the road from now until I trailer it to the dealer to collect my new car. Now he tells me that if I sorn it, it will not fit the scheme and I can’t put it in for scrappage. He says I have to put it through a new MOT, tax and insure it (at a cost of about £500). Just so it can sit in my garage for two months awaiting the new car. I’ve looked at the terms and conditions of the scheme and it seems to say that the old car needs to have a valid MOT, tax and insurance at the point of ordering, NOT collection. Is that the point of me ordering the new car – or the dealer ordering it from Fiat? I’ve argued the point with the dealer and he says other people have fallen into the ame trap in ordering and then sorning – they have lost out on the scheme. He says Fiat has made the rule of ‘point of collection’ instead of ‘point of ordering’ – can they do this under the scheme, surely if half the money is coming from the government, everyone has to play by the same rules?
my son has a car eligible for scrappage. Can this car be used against purchase of my new car. Can he purchase it on my behalf and then immediately transfer ownership to me. We do not live at same address.
My car is eligible for the scrappage scheme but it no longer runs, would it still be possible to use it for the this scheme.
Thanks.
Hi there
My car’s cam belt broke the other day. am I able to use this under this scheme. It is not running at the moment.
Before you post “I have a xxxx, does it qualify?” … you might try reading the Eligibility section higher up the page.
“It must be first registered in the UK before 29 February 2000 (”V” reg and earlier)”
So, if it’s W or X reg, no it doesn’t.
Hello My car is a S reg has just been MOT’ed with 12 months Tax & insurance, if I were to order a new car under the scrappage scheme can I cash in the remaining road fund licence when my old car is taken away for distruction?
has the scrappage scheme now finish ? my vehicle is ok but i will not have owned for a year until the 23rd March.
thank you for any advice
Hi
I have a similar problem to a previous query. I agreed to buy a new car from a dealer about 6 weeks ago. He said the expected delivery date would be mid-March. I explained at the time that my tax would expire on 28.02.10 and the MOT on 10.03.10. In addition, my insurance is due for renewal on 15.03.10. The dealer said for the period after the tax expires, I would probably be best driving my girlfriend’s car (because I need one for work) rather than spend more cash for the sake of 2 weeks. It seemed daft to pay for an MOT and, perhaps, work to be done for it to pass for only 2 weeks.
Now, my car is SORN and soon to be without a valid MOT and insurance.
So, my question is: to take advantage of the scrappage scheme, does my old car have to have a valid MOT and tax at the point I paid my deposit and signed for it OR when I formally receive the car?
Thanks in advance
I ordered a VW Polo in early Nov2009 and agreede scrappage deal on my old Micra. Delivery date was quoted as 3rd week Jan 2010. I am now told delivery will be in April so I can’t have £2000 scrappage deal.
What are my options?
My wifes playing around, should I shoot her?? Also would I then be able to use her car for scrappage?
my MOT runs out this month and if it fails the MOT I’m thinking of trading my car in under the scrapage scheme instead of spending money to get it through the MOT. Can I do this as in theory the car failed its MOT???
I am a disabled driver and want to take out my first motability car I would like to know if I am entitled to avail of the scrappage scheme for my 10 year old car. urgent reply would be much appreciated.
My husband traded his car in under the scrappage deal in September 2009. We were advised at that stage the scrappage firm would contact DVLA and there was no responsibility for him to inform DVLA as the whole log book document was sent to the scrappage firm. Now DVLA are trying to enforce a £80 penalty for late licence of this vehicle. I have sent them the certificate of destruction but still they are adamant that we have to pay the £80 penalty.
Has this happened to anyone else and are we liable for the penalty?
Edwin Atkins
My car was wrote of by my insurance company due to flood damage,
Car was new when purchased in March of 2006. I am buying a new car
and i would like to know if I come under scrappage deal.
If you are looking for a cheap mot in York you could try MOT York
Hi
I have a r ref ford fiesta but date of first registry 17-10-10, it is manufactured in 1998, do you think did they accept my car?
i was promised £ 4000 scrappage discount off a new car.It soon became apparant that it was only £2000 scrappage and a £2000 discount available to everyone. I challanged that the original £4000 was not correct and eventually cancelled the car, they will now not return my deposite as they say it has cost them £1000 to register the car on the scheme and they won’t get it back. It was less than 24 hrs from visiting the showroom to cancelling. Is it true that it has cost the dealer £1000 that they will not get back?
Would someone be able to tell me if my Mother can enter the scrappage scheme with her late husbands car. He passed away last month and the vehicle is in his name to be transfered into her name. Can she use this vehicle to purchase a new one with the scheme even though her name has not been on the logbook?
I have a 1995 clio and the timing belt has just snapped. Do I need to have this fixed in order to put it in for the scrappage scheme?
i have a bmw estate an old one 1996, can i do the scrappage scheme with this car it has 12months mot and 6 months tax, and if so could you tell me which garage’s do the scheme because ive heard not all of them do it
my son has a car eligible for scrappage. Can this car be used against purchase of my new car. Can he purchase it on my behalf and then immediately transfer ownership to me. We live at same address.
my car is a v reg and i woukd like a new car bt is this scrappage is still aviable and how long for ? i keep getting told differnt things x
Hi,
I am French and I am in UK for 1 year. In July 2010, I will be leaving the UK and I would like to scrap my old English Ford Escort (1996). I do not plan to buy a new car since I go back to France then.
Can I however get money if I scrap this car without buying another one?
Thanks for your response.
Regards