As we continue our Budget 2009 coverage here at TheGreenCarWebsite.co.uk, we thought we’d break down the scrappage scheme into bite-size pieces showing you exactly how it works and who will qualify.
So following yesterday’s House of Commons statement which confirmed the introduction of the incentive scheme here is our breakdown:
- - A total of £2,000 will be offered as part of a “cash for scrap” scheme on cars that are 10 years old or older.
- - The £2,000 on offer does not all come from the Government – in fact it is broken down into £1,000 from the Government and £1,000 from the car manufacturer if it participating in the scheme.
- - Car manufacturers are NOT obliged to participate – their involvement is voluntary.
- - The Government will supply around £300 million in funding for the scrappage scheme, which will be matched by participating car makers.
- - The discount will be made available to consumers that buy a new vehicle to replace a qualifying vehicle (i.e. one that is 10 years or older) and that they have owned that car for at least 12 months.
- - Registered keepers must have a UK address and eligible vehicles must have been first registered in the UK on or before July 31 1999 and have a current MOT certificate.
- - In addition to cars, the scrappage savings will also be made available to commercial vans that weigh up to 3.5 tonnes.
- - Scrappage trade-ins can only be made against new cars – not against used vehicles.
- - The scheme is expected to be introduced in mid May and will run until the start of March 2010 or until all Government funding has been used.
