Scrappage scheme: the details

• Full details of scheme
• Car makers can opt out
• It applies to vans, too

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Details have been released about the car scrappage scheme, announced in the Chancellor's Budget, earlier today.

UK Scrappage scheme: the details

1 The £2000 incentive is made up of £1000 from the Government with matched funding from industry. The scheme will operate from mid-May until March 2010, or until the Government's funding allocation has been used.

2 It applies to commercial vans (up to 3.5 tonnes) as well as cars that are 10 years old, or older.

3 The scheme is voluntary, so not all manufacturers or dealers will necessarily participate.

4 How to apply
The dealers will do all the paperwork for motorists who wish to participate in the scheme. They will also arrange for the old vehicle to be scrapped. The dealer will check that the vehicle being traded in and the new one being bought qualify under the scheme's rules:-

Old vehicle requirements

• Passenger car or small van up to 3.5 tonnes


• First registered in United Kingdom on or before 31 August 1999


• Must be registered with the Driver and Vehicle Licensing Agency (DVLA) or Driver and Vehicle Agency in Northern Ireland (DVA) in your name


• Must have been registered to you continuously for 12 calendar months before the order date of the new vehicle


• Must have a current MoT test certificate before the date of order for the new vehicle (or within 14 days of expiry at the time of order)


• Must have a UK address on the registration certificate (V5C)


• Must have a current tax disc before the date of order for the new vehicle (or within 14 days of expiry at the time of order)

• Passenger car or small van up to 3.5 tonnes


• First registered in the UK on or after the date the scrappage scheme is launched and declared new at first registration in the UK with no former keepers


• UK specification vehicle


• It must subsequently be registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped