Car Scrappage Schemes
Thinking of scrapping your car? Is your car eight to ten years old? Thinking of buying something new? Well, there are numerous car scrappage schemes you could take advantage of to get more money for your old motor.
There are potentially thousands of pounds in discounts waiting at your nearest car dealership. Yes, you’ll have to buy a brand new car, but the money you’ll receive in return for your old car will most likely offset a huge chunk of depreciation for the foreseeable future.
With most scrappage schemes, manufacturers don’t even care about the condition of your car, as long as you’ve owned it for the amount of time they specify, you’ll qualify for a discount on your new wheels.
Read on for more info on the UK’s most popular scrappage schemes offered by the major car manufacturers…
If your car is an older model nearing “worthless” levels on the secondhand car market, has been labelled a Cat D car by your insurance company, or has a serious fault or heavy body damage, these car scrappage schemes are not for you.
In these instances, we recommend websites or businesses that allow you to scrap your vehicle and get paid.
Car scrappage schemes explained:
- Government car scrappage schemes
- The impact of the Toxin tax and car scrappage scheme
- Scrappage schemes for Londoners
- How to use a car manufacturer scrappage scheme
- Toyota scrappage scheme
- Ford scrappage scheme
- Vauxhall scrappage scheme
- MG scrappage scheme
- Mazda scrappage scheme
- Audi scrappage scheme
- BMW scrappage scheme
- Mercedes scrappage scheme
- Kia scrappage scheme
- Hyundai scrappage scheme
- Mitsubishi scrapage scheme
- Skoda scrappage scheme
The Government and car scrappage schemes
Concerns over air pollution in the UK’s major cities have caused the Government to crack down on high polluting vehicles, especially in London with ULEZ and in Birmingham with a new CAZ (clean air zone).
In recent years car scrappage schemes endorsed by the Government have become an increasing element of the car industry.
The Government pledged to “be the first generation to leave the environment in a better state than we inherited it.”
During the last few years, they have been dragged to court on three occasions over the high levels of pollution in major cities.
Currently, they are being taken to the European Court of Justice as a result of the levels of air pollution.
Much of the focus has been on the dangerous levels nitrogen dioxide (NO2).
Now, the government is taking action. They’ve introduced new legislation to curb the amount of NO2 pollution in UK cities, helping levels drop to the legal limits.
Despite some environmental groups saying that the new laws do not reach far enough, the future for diesel in the UK seems uncertain.
At the turn of the century, the UK government was actively encouraging people to switch to diesel, believing it to be a cleaner alternative to petrol.
Now, that message has been completely scrapped.
New “toxin” taxes have been introduced in recent years. By 2030, the government hopes to ban the sale of all “conventional” petrol and diesel cars.
These policy changes and new taxes have had had a significant effect on diesel sales.
In 2020, British Prime Minister Boris Johnson was set to announce a new government scrappage scheme – but, in the wake of the Covid crisis, this has subsequently been put off. The UK Government has now officially ruled out any such scheme.
The impact of the toxin tax and car scrappage schemes
The price of diesel cars has plummeted since the government announced its targets to cut NO2 pollution levels.
Though recent trends have pointed to a slight revival, there still seems to be a lot of uncertainty regarding the future of diesel, and high-polluting petrol cars.
As a result, many owners of diesel and older petrol vehicles will be considering what to do next.
For many, the answer lies with a scrappage scheme. Though they previously would have hoped to sell their car on, trends in the market mean car scrappage schemes are becoming increasingly popular.
The government had been considering proposing a nationwide car scrappage scheme which would compensate drivers for exchanging their high-polluting cars.
They are yet to introduce a nationwide car scrappage scheme. Some councils have been appealing to the government to support local car scrappage schemes, in order to improve air quality.
Scrappage schemes for Londoners
With ULEZ forcing Londoners to move away from old cars and the fact that you now need a Euro 6 compliant vehicle (or similar level car) to drive for free in central parts of the capital, scrappage schemes for older cars are proving more appealing than ever.
Early in 2019, the London Mayor, Sadiq Khan announced that a new scrappage scheme for Londoners. Since October that year, it has been in full effect.
But it doesn’t apply to everyone, only Londoners on low-income or with disabilities will be able to take advantage of the new incentive.
Those who qualify, claim up to £2,000 for scrapping their old car, or £1,000 for a motorcycle or moped.
There’s £25m in the pot to fund this new initiative, and that’s alongside funds of £23m that are already available for micro-businesses, sole traders and charities who wish to ditch their older vans.
This latest ULEZ scrappage scheme is to help those who could struggle to pay the Ultra Low Emission Zone tariff when the boundary expands in 2021, it will then include both North and South Circular roads.
Alongside this new incentive, all applicants will be eligible for a year’s free membership of the Santander Cycles scheme, this will let you ride for 30 minutes for free before being charged.
To qualify for this new scrappage scheme, you must be in receipt of one of the following:
- Pension Credit
- Universal Credit
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-Related Employment and Support Allowance
- Working Tax Credit
The following non-means-tested Disability benefits also allow you to partake in the scrappage scheme:
- Personal Independence Payment
- Disability Living Allowance
- Attendance Allowance
- Armed Forces Independence Payment
- War Pensioners’ Mobility Supplement
- Carers’ Allowance
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefits
- Constant Attendance Allowance
You can apply for the ULEZ car and motorcycle scrappage scheme by clicking here.
Whether you live in London or not, UK car scrappage schemes are programmes offered by governments and car manufacturers aimed at encouraging drivers to trade in their higher polluting vehicles for newer, and often greener, models. They’re proving a popular way to sell an older car.
Drivers receive incentives in return for trading in their old, but still fully functioning car. Often this takes the shape of a discount on a new car.
Car manufacturer scrappage schemes
As a result of recent trends, many big-name car brands launched scrappage schemes of their own.
Due to their popularity, and the ever-increasing focus on cleaning up the air in UK town and cities, many of these schemes were extended.
Most of them provide financial incentives for turning in older and high polluting vehicles, often in the form of a discount on a new car.
Here we look at some of the scrappage schemes still offered by leading car manufacturers.
If you are thinking of buying an electric car, these car scrappage schemes might be extra attractive for you, as they come in addition to the government plug-in grants for low emission vehicles.
Some of these car scrappage schemes are drawing to a close, so if you are considering getting rid of your old car, you’d better hurry!
Toyota scrappage scheme
New Toyota vehicles must be ordered before 31st March 2021 – and registered by 30th June 2021.
To qualify for the scheme, the owner of the trade-in vehicle must be named as the registered keeper, and resident at the UK address shown on the Vehicle Registration Document (V5) and have owned the trade-in vehicle for a minimum of 6 months before the new Toyota order date.
By trading in an old Toyota, you can receive between £2,000 and £4,000 (saving dependent on the model chosen and including VAT). Offer excludes GR Yaris, Mirai, Hilux Active grade, and Proace City.
Ford scrappage scheme
The UK’s most popular car brand runs its own scrappage scheme.
Ford are offering up to a £2,000 discount on a wide selection of models. However, unlike others on this list, they do not take into account any additional value on your car.
If your car is worth more, they won’t add that on to your discount.
Your old car must have been registered before 1st January 2013 and you need to have owned it for 90 days in order to be eligible for the scheme.
This offer is also available for commercial vehicles.
Vauxhall scrappage schemes
Currently, Vauxhall are offering up to £2,000 off the price of the new towards a new Vauxhall when they trade in their old car for scrappage.
You must have owned the car for more than 90 days prior to scrappage.
MG scrappage scheme
MG have dubbed their scheme ‘swappage’. It guarantees a £1,500 minimum part-exchange on any petrol or diesel vehicle.
MG claims its long-standing deal provides a much more straightforward alternative to many of the recent scrappage schemes that can confuse buyers with complex deals as well as caveats that can exclude a range of potential trade-ins.
You’ll have to have owned the car for at least three months.
Mazda scrappage schemes
To be eligible for Mazda’s scheme, your petrol or diesel car must have been registered before 31 December 2011.
When you trade it in, you’ll be given up to £4000 off the price of a Mazda that emits less than 161g/km of CO2.
Scrappage cars must have been owned for at least 60 days.
Audi scrappage schemes
Audi’s did run a generous scrappage scheme giving you up to an £8,000 discount off a new car; sadly, it ended in 2018 and hasn’t been renewed.
BMW scrappage scheme
Initially, BMW had only planned to run their scrappage scheme to the end of 2017. It was then extended to 2018 but like Audi, hasn’t been renewed.
Mercedes scrappage scheme
Mercedes were offering up to £2,000 to trade in an older Euro 4 diesel car, but this offer ended on the 30th June 2018.
Kia scrappage scheme
Kia are offering £2,500 off a group of their models. These currently include the Stonic, Picanto, Niro and Sportage.
To qualify your car must be older than 31st December 2012 and be owned by yourself for at least three months, the scrappage scheme cannot be used with any other offers.
Kia are accepting both diesel and petrol cars on their scrappage scheme.
Hyundai scrappage scheme
If you qualify for Hyundai’s scrappage scheme, you can receive a discount of between £300 and £4,000 off a new Hyundai model.
Only cars registered before 1st July 2012 are eligible. You need to have owned it for at least 3 months
Euro 1-3 Standards cars will be scrapped, but those with a 4 and 5 can be traded in.
Mitsubishi scrappage scheme
Mitsubishi were offering discounts ranging from £2,000 to £6,500 on a number of their new models, however, this scheme has now ended.
Skoda scrappage scheme
Skoda launched their “scrappage incentive” ended in 2018 and it has not been renewed.
Thinking about going electric?
If you want to know more about new electric cars, you can read our definitive guide to electric cars.
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