Scrappage schemes – a simple guide

Scrappage schemes – a simple guide

Manufacturers offer scrappage schemes to incentivise people to part with their cash and upgrade their old cars for newer, more eco-friendly vehicles – but how do the schemes work?

Until recently, schemes would swap diesel vehicles for less polluting petrol or hybrid models – older diesels emit much higher levels of nitrogen oxide (NOx), which is linked with respiratory problems and premature death. As alternative fuels become increasingly popular, manufacturers are now also changing petrol cars for new greener vehicles.1

Here’s everything else you need to know about the schemes.

What is a scrappage scheme?

diesel_scrappage_schemes

A scrappage scheme encourages motorists to part-exchange their old, polluting car for a new, eco-friendly one, by offering cash towards the new car when trading in the old one.

Why are they important?

People are becoming increasingly concerned about localised pollution in the wake of more publicity around the immediate damage that emissions – and not just CO2 – can have on our health.

The figures make for sobering reading. Depending on which study you read, poor air quality is linked to anything from 10,000 to 40,000 premature deaths in the UK each year.

And the problem is particularly acute in cities, many of which regularly breach EU limits for air pollution. A 2014 Public Health England report estimated that 7.2% of deaths in London are linked to air pollution.

As the government aims to bring all greenhouse gas emissions to net zero by 2050, the end date for sales of petrol and diesel cars could be brought forward to 2030.

Is there currently a diesel scrappage scheme?

scrappage_scheme

There is no UK-wide, government-backed scrappage scheme at present.

Ministers rejected calls for a new scheme to help with the costs of an electric car back in July this year, after manufacturers felt drastic action was needed to address record-low sales affected by the coronavirus crisis.

However, the government does offer a maximum grant of £3,000 as a contribution to buying a brand-new low emissions vehicle.

London residents that receive certain benefits can also apply for a grant of up to £2,000 to scrap cars and motorcycles that don't meet the Ultra-Low Emissions Zone (ULEZ) standards.2

Current manufacturer scrappage schemes

Audi scrappage scheme

Audi do not currently offer a scrappage scheme.

BMW scrappage scheme

BMW do not currently offer a scrappage scheme.

Citroen scrappage scheme

Save up to £5,000

Le Citroën Swappage, as it likes to be known, is available to customers who have owned a qualifying vehicle for a minimum of 90 days.

The car should have been first registered in the UK before 1 January 2014.

Offer applies to cars ordered from 1st October – 31st December 2020 and registered by 31st December 2020.

The £5,000 maximum saving is available on the Grand C4 Space Tourer.

Dacia scrappage scheme

Save up to £750

Dacia’s scheme is available on cars registered to customers for at least 90 days.

To find the qualifying criteria for the trade-in vehicle, you should book an appointment with Dacia’s New for Old service.

The biggest discount is available on the manufacturer’s SUV crossover, the Duster.

DS scrappage scheme

DS do not currently offer a scrappage scheme.

Ford scrappage scheme

Ford do not currently offer a scrappage scheme.

Hyundai scrappage scheme

Save up to £5,000

Hyundai’s Scrappage and Emission Reduction Scheme allows owners of petrol and diesel cars registered before the 1 July 2012 to trade in their car for a discount.

Cars with a Euro 1-3 emissions standard, the most polluting, will be scrapped completely.

The customer must have been the registered keeper for at least 90 days.

Those buying the Santa Fe and Tucson could be eligible for the £5,000 saving.

Kia scrappage scheme 

Save up to £2,500

The South Korean manufacturers accept any trade-in car in good working order, first registered on or before 31 December 2013.

Customers must have owned the car for at least three months. See the Kia Car Scrappage Scheme 2020 for more details.

Maximum discounts are available on the Sportage, Stonic, Picanto, Rio or Niro.

Lexus scrappage scheme 

Save up to £4,000

The Lexus Scrappage Scheme only runs until 15 December 2020.

Accepting vehicles first registered before 1 October 2012 and owned by the customer for over 6 months.

The biggest savings can be applied to the ES, RX, RX L and NX.

Mazda scrappage scheme

Save up to £4,000

Mazda’s scrappage scheme accepts trade-ins of petrol and diesel cars first registered on or before 31 December 2011.

It can be used to purchase a new Mazda with CO2 emissions up to 160 g/km, until 31 December 2020.

Customers must have owned their older vehicle for a minimum of 60 days.

The Mazda 6 and CX-5 offer the maximum saving of £4,000.

Mercedes-Benz scrappage scheme

Mercedes-Benz do not currently offer a scrappage scheme.

MG scrappage scheme

MG do not currently offer a scrappage scheme.

Mitsubishi scrappage scheme

Mitsubishi do not currently offer a scrappage scheme.

Nissan scrappage scheme

Save up to £6,000     

Nissan’s self-titled Switch-Up Scheme offers a hefty £6,000 saving on the Qashqai.

Trade-in vehicles should have been registered before 31 December 2013 and owned by the customer for at least 90 days.

Orders on new cars must be placed before 31 December 2020.

Peugeot scrappage scheme

Peugeot do not currently offer a scrappage scheme.

Renault scrappage scheme

Save up to £3,000

Another scheme with the ‘New for Old’ name, Renault’s trade-in deal is open to customers who have owned their car for at least 90 days.

It’s unclear how old your car should be, so it’s best to book an appointment directly.

The £3,000 discount is available on the Kadjar and ZOE GT.

Seat scrappage scheme

Seat do not currently offer a scrappage scheme.

Skoda scrappage scheme

Skoda do not currently offer a scrappage scheme.

Suzuki scrappage scheme

Suzuki do not currently offer a scrappage scheme.

Toyota scrappage scheme

Save up to £4,000

Cars first registered up to and including 30 September 2012 could be eligible for the Toyota Scrappage Scheme.

Unlike many other schemes, customers must have owned their vehicle for a minimum of 6 months.

All new vehicle orders must be placed before 15 December 2020 and cars should be registered by 31 March 2021.

You can receive between £2,000 and £4,000 on a limited range of new vehicles, with the Supra and Hilux offering the best potential saving.

Volkswagen scrappage scheme

Volkswagen do not currently offer a scrappage scheme.

Does it matter what age or condition your trade-in car is in?

The age of the car is important as a car has to be a particular emissions standard (usually 4 or lower) to qualify for these schemes. This standard is typically determined by when the vehicle was made.

The condition of the car, however, isn’t important, meaning you could potentially trade in a car worth £500 for £2,000. For many, that’s the key appeal of a scrappage scheme.

Will there be a government scrappage scheme in 2021?

The chances of a government-backed scrappage scheme in the near future look very slim.

Rachel Maclean, junior minister for transport and the environment, made it clear in July 2020 that there were no plans to introduce a scheme after growing pressure from the industry to respond to record-low sales triggered by the coronavirus pandemic.

The Department for Transport took the opportunity to remind people about its £2.5 billion investment in ultra-low emissions vehicle grants and funding, including help to provide new electric vehicle charge points

Ms Maclean also reiterated the government’s commitment to phasing out the sale of new petrol and diesel cars by 2035 “or sooner.”

A similar scrappage scheme was dismissed in 2018 as ministers believed it was difficult to deliver and potentially open to abuse.

Clean Air Zones are expected to roll out in Bath and Birmingham in 2021, while the while the London ULEZ will be expanded to the North and South Circular roads from October.

Does my car qualify for a scrappage scheme?

Diesel cars

Although different manufacturers have different eligibility criteria for their scrappage schemes, the majority of trade-in deals feature similar rules:

  • Customers usually need to own the car for at least 90 days (this can vary though, from 60 days up to 6 months)
  • Trade-in vehicles should be around eight years old – also varies according to manufacturer.

Check the criteria above and manufacturers’ websites for more details.

 


1 https://www.gov.uk/plug-in-car-van-grants
2 https://tfl.gov.uk/modes/driving/scrappage-schemes