Lord Mandelson has announced that the UK’s car scrappage scheme is to be extended.
The scheme, which started in May and gives consumers £2,000 off their new car if they trade in one at least 10 years old, has been extended to cover 100,000 more vehicles.
The age qualification of the scrapped vehicle has also been changed by six months, to any car registered before 29 February 2000.
Under the terms of the Scrappage scheme as announced by the BERR (Dept. for Business, Enterprise and Regulatory Reform), the Government and car manufacturers will jointly fund a discount of £2,000 off the purchase price of a new car or light commercial vehicle for customers who trade in vehicles that were first registered on or before 29 February 2000.
Under the terms of the scheme, the Government will fund half (£1,000) of the incentive, to be matched by participating vehicle manufacturers, so giving consumers a £2,000 incentive to trade in their vehicle that is ten or more years old and purchase a new one.
Lexus will participate in this scheme; you can find out more information from your local Lexus Centre.
Scheme Details
Qualifying vehicles to be scrapped - criteria:
- Passenger car or small van up to 3.5 tonnes
- First registered in United Kingdom on or before 29 February 2000
- Currently registered with DVLA to the registered keeper making the application, or currently on Statutory Off Road Notification (SORN)
- Current MOT test certificate
- Registered Keeper must have a UK address
- The registered keeper has been the registered keeper of the vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle.
Qualifying vehicle to be bought – criteria:
- Passenger car or small van up to 3.5 tonnes
- First registered in the UK, 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
- Registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped
Scheme Duration
- Start: 18 May 2009
- End: When allocated Government funds are used up
Size of incentive
- £2,000 discount for consumer
- Based on £1,000 from government and £1,000 from vehicle manufacturer
- Discount would apply to any model from a manufacturer participating in the scheme
- The discount would apply to the list price plus factory fitted extras plus VAT
Process
The Lexus Centre will complete all the paperwork for motorists participating in the scheme and arrange for the old vehicle to be scrapped. The Lexus Centre will check that the vehicle being traded in and the new one being bought qualify under the scheme.
Benefits of the scheme
- CO2 emissions reduction – Around 100,000 tonnes of CO2 will be saved each year
- Financial – Overall the scheme could deliver a net benefit to Exchequer of £193 million through the VAT receipts of the higher level of vehicle sales. This potentially offsets tax increases in other areas
- Safety – Estimated cost savings from reduced accidents of over £16 million per annum (based on better technologies fitted to vehicles, e.g. ABS and Stability Control).
These benefits are based on a number of assumptions, e.g. a vehicle travels 15,000 km per annum.
