Car scrappage – the details
Alastair Darling, Chancellor of the Exchequer, announced the details of the new car scrappage system in the Budget yesterday. These are the headlines of the scheme.
- A total of £2,000 will be offered in a “cash for scrap scheme” for cars that are 10 years old or over.
- The amount of £2,000 will be funded by £1,000 from the Goverment and £1,000 from any manufacturer who participates in the scheme – Citroen has already agreed to do this.
- Scrappage schemes will apply to commercial vans as well (up to 3.5 tonnes)
- Manufacturer participation is voluntary however.
- The total funding pot available from the Government, in the scheme, is £300 million which they hope will be matched by all the manufacturers.
- The scheme is going to be introduced by mid-May.
- The scheme is scheduled to run until March 2010 or until all Government funding has been used up.
- The discount is only available to consumers who are buying a new vehicle to replace one that they have owned for over twelve months.
- The registered keeper must have a UK address.
- Only cars that have been first registered in the UK on or before the 31 July 1999 and have a current MOT certificate will be eligible.
- The scheme is to be audited by the DVLA.
- Scrappage trade-ins can only be made against new cars (i.e. not used)
So if your car is under 10 years and you want a new one now then contract hire may be the answer as all you will pay is a rental deposit of three rentals followed by subsequent monthly payments for the term of the contract.
Tags: cars, contract hire, UK government scrappage scheme, vans
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