Details of scrappage plan released

The Government has introduced a £300 million car-scrappage scheme to kick start the ailing motor industry by giving owners of vehicles 10 years old or more £2,000 towards the cost of a new model.

Modelled on similar schemes in Europe, details of how the bid to revive the struggling motor industry and boost the number of fuel-efficient vehicles on UK roads have been released.

This is how the scheme will work:

:: The £2,000 grant is made up of £1,000 from the Government with matched funding from industry.

:: The scheme will operate from mid-May until March 2010 or until the Government funding has been used.

:: It applies to commercial vans (up to 3.5 tonnes) as well as cars that were registered in the UK on or before July 31 1999.

:: The scheme is voluntary, so not all manufacturers or dealers might participate.

:: Dealers will do all the paperwork for motorists participating in the scheme and 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.

:: Old cars will have to be currently registered with the Driver and Vehicle Licensing Agency (DVLA) to the registered keeper making the application, or currently on Statutory Off Road Notification (SORN).

:: The vehicle will have to have a current MoT test certificate.

:: The registered keeper must have a UK address.

:: The registered keeper will have to have been the registered keeper of the vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle.

:: The new vehicle must be a brand new UK-specification vehicle only.

:: The scheme will be audited by the DVLA.

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