Scrappage scheme: the latest manufacturer offers
The Government may offer a £6000 scrappage incentive, and many car makers are already offering up to £5000 off new cars. Here are the latest discounts...
A draft plan for a Government-backed new car buying incentive scheme designed to stimulate sales and protect jobs in the wake of the coronavirus crisis has been drawn up.
However, it is far from certain that it will be implemented, or what final form it will take.
The proposal has been drafted by car manufacturers and retailers. However, it is not likely to even be considered until late 2020 at the earliest given that July's new car registrations are well up compared with the same month in 2019, as a result of pent-up demand from lockdown being handled by now-open retailers.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: "The first thing Government wants to see is the true state of the new car market, and the crucial indicator of that will be in September, with the plate change. Only then will it consider if it needs to stimulate the market to protect jobs."
Hawes added that the Government's focus was likely to be on helping UK-based manufacturers such as Honda, Jaguar, Land Rover, Nissan, Toyota and Vauxhall, and added that a scheme focussed on electric and plug-in hybrid cars was unlikely because of the supply of these cars being restricted by manufacturing limitations.
Despite this, some car makers are already offering their own scrappage discounts to encourage motorists to trade older cars in for new, more efficient models, details of which are below.
To qualify for the schemes the car you're trading in must comply with Euro 1-4 emissions standards, which generally means it will have been first registered before 31 December 2009, although some schemes have been extended to cover newer cars, too.
Euro standards set the emissions limits for new cars; the first, Euro 1, was introduced in 1992. You can check the Euro emissions standard of your car https://www.gov.uk/co2-and-vehicle-tax-tools.
Click on to the following slide to find out what the city of London is offering...
The Capital's scrappage scheme
London mayor Sadiq Khan introduced a car scrappage scheme in October 2019 providing a discount of £2000 off a new car to help 'low-income' motorists to switch to less polluting cars and avoid having to pay the £12.50 daily charge when the Ultra Low Emission Zone (ULEZ) is expanded in October 2021.
Eligible cars are petrol ones that are Euro 4 compliant (generally older than 2005) and Euro 6 diesel cars (first registered before September 2015).
It's estimated that more than 2.5 million cars will incur the ULEZ charge when the zone is increased to encompass the entire area between the North and South Circular roads. The daily fee for driving a pre-Euro 3 petrol car or a pre-Euro 6 diesel equates to £87.50 a week or £4550 a year.
Khan announced a £23 million scrappage scheme for vans in 2018, so this new £25 million incentive brings the total amount available to the capital's motorists up to £48 million.
Click on to the following slide to find out what car manufacturers are offering...
Swap your older car for a lower emission new one and you'll qualify for a Swappage Scheme discount of up to £4000 off a new car. The biggest discount is on the C4 SpaceTourer, and there are automatic savings of £3000 on other models, including the C3 Aircross, C4 Cactus and C5 Aircross. The discount on the C1 city car is £2250. The offer only applies to cars that are in stock at dealerships.
New cars must be ordered and registered before 30 September 2020. All Swappage vehicles must have been owned for more than 90 days, and registered in the UK before 1 January 2014.
Not all traded-in cars will be scrapped, but those that are will be collected and disposed of by CarTakeBack.
Citroën's offer can be used in conjunction with the means-tested London scrappage scheme by residents of boroughs that will be in the new Ultra-Low Emission Zone to get a further £2000 off a new car.
Customers must have owned their trade-in car for at least 90 days, and new cars must be ordered by 30 September 2020 and registered by 31 December.
Buyers can get up to £5000 off a new Hyundai when they trade in their older petrol or diesel car. To qualify, cars must have been registered before 1 July 2012, meaning they conform to Euro 5 standards or lower.
The most polluting vehicles – those that comply with Euro 1-3 standards – will be scrapped under Hyundai's scheme, while owners of Euro 4 and 5 cars can trade in their cars instead, receiving a residual value calculated by used car experts CAP.
Hyundai's discounts are in lieu of any other offer and apply to new cars registered before 30 September 2020.
The full list of Hyundai discounts is below:
Hyundai i20 (except Play) – £2400
Hyundai i20 Play - £900
Hyundai i30 (all 5dr, Tourer and Fastback models) – £3500
Hyundai i30 N Line (5dr) – £2500
Hyundai i30 N (275 PS) – £2500
Hyundai Ioniq (except Electric) – £3000
Hyundai Kona (all non-electric models) - £2500
Hyundai Kona Play and Hybrid - £2000
Hyundai Tucson (except N-line) – £4000
Hyundai Tucson N-line – £2500
Hyundai Santa Fe – £5000
Buyers can get up to £2500 off selected new Kia models when they trade in their older petrol or diesel car. To qualify, trade-in cars must have been registered before 31 March 2013, meaning they conform to Euro 5 standards or lower.
Savings of up to £4000 are on offer from Toyota's luxury brand for older cars traded in before 30 September 2020. Your trade-in must have been first registered before October 1 2012 and you must have owned it for at least six months. To be eligible new cars need to be ordered by 30 September 2020 and registered by 31 December.
To qualify 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. The discount will be offered whether you pay with cash on a PCP finance deal, on cars registered by 30 September 2020. Scrappage cars must have been owned for at least 60 days.
MG’s Swappage scheme enables buyers to get £2000 off a new MG3, or £4280 off an MG ZS, when they trade in a car registered on or before 30 September 2013 that they’ve owned for at least three months. The offer applies to cars bought with cash and on finance and is valid for cars registered by 30 September 2020. The offer is available on all trim levels except Explore.
Nissan's Switch Up scheme offers up to £6300 for buyers trading in eligible cars, which must have been first registered before 20 December 2012 and registered in the customer's name for at least 90 days. The offer runs till 30 September and is available on all trim levels except Visia.
If you're after a new Renault you could get up to £3000 off with the French brand's New for Old scrappage scheme. To be eligible trade-in cars have to be first registered before 31 March 2014 and owned by you for at least 90 days. Cars need to be ordered by 30 September and registered by 31 December 2020.
Toyota’s scrappage scheme applies to cars first registered by 30 September 2012 and owned by the current owner for at least six months. The initiative is for cars purchased before 30 September 2020. Buyers can save up to £4000 off cars and vans.
The savings are as follows:
Toyota Aygo – £2000
Toyota C-HR Hybrid - £2000
Toyota Camry Hybrid - £2000
Toyota Corolla Hybrid - £2000
Toyota GT86 - £2000
Toyota Land Cruiser - £2000
Toyota Prius - £2000
Toyota RAV4 Hybrid - £2000
Toyota Supra - £4000
Toyota Yaris (excluding Hybrid) - £2500
Toyota Yaris Hybrid - £1500
Toyota Hilux - £4000
Toyota Proace - £3000
Toyota Proace Verso - £3000