Long-awaited bangers-for-cash scheme gs live, cutting new-car prices by £2k
The Govt’s long awaited cash-for-scrap scheme gs ‘live’ on Monday, May 18. Pretty much every major make sold in the UK has signed up for the scheme, under which buyers owning cars that are at least 10 years old get a discount of least £2000 provided they trade theirs for a new one.
The govt's aim is to kick-start new car sales after 11 months on the trot in which they have fallen. It follows hard on the heels of similar schemes already in place elsewhere in northern Europe, including Germany and Italy; dealers in both countries reported a huge increase in sales once the schemes were under way.
And already there are signs that such success will be repeated here. Citrn, which began its own scrappage scheme last month, has reported car registrations up by almost a sixth. Honda has seen sales inquiries rising by a similar amount. Most are for its Jazz superminis, which it imports. But it says there has also been strong interest in its British built models – the Civic hatchback and CR-V off-roader.
Here’s how the deal works. If you’ve a car that was registered before the end of August 1999, that you’ve owned for a year and that has a current of just-expired MoT certificate, you can take it to a dealer and part-exchange it for a new car. The scheme allows one car per deal so if you’ve two 10-year-old cars you can’t swap them for a single new car and save £4000. But you can buy as many cars as you wish.
Provided all the conditions are met, the Govt contributes £1000 discount and the car maker matches that. But it is up to the car dealer to administer the scheme and apply the rules.
After you’ve ordered the car, the dealer has four months in which to supply your car. If it takes longer, you mayn’t get the discount.
Once the dealer has your old car, he must arrange for it to be scrapped using an approved dismantler. The Govt expect that up to 85% of your old car will be recycled.
The scheme will run until the end of next February, or until the £300m the Govt has set aside for it run out. That figure includes the discount and the cost of operating the scheme.
These car makers have each said they will take part: Abarth, Alfa Romeo, Audi, BMW, Chevrolet, Chrysler, Citro?n, Daihatsu, Fiat, Ford, Honda, Hyundai, Isuzu, Jaguar Land Rover, Kia, Lexus, LTI, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Renault, Peugeot, Proton, Porsche, Saab, SEAT, ?koda, smart, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen and Volvo. Each has indicated that the scheme will be available across their model ranges. Cash for scrap: your questions answered
May 14, 2009