WIREDGOV

Government announces March deadline as exit phase for scrappage scheme

News Release issued by the COI News Distribution Service on 03 February 2010

An extra month has been added to the deadline for the Government Scrappage Scheme today, allowing manufacturers and dealers more time to prepare for and operate the exit phase of the scheme.

This change was announced by Government following requests from car manufacturers for more time to prepare dealers and inform consumers.

Previously due to complete in February, the Scheme, which is jointly run by the Government and car manufacturers, will now run until the end of March or until the money runs out, whichever is the sooner.

Business Secretary Lord Mandelson said:

“Against the background of the economic downturn the Scrappage Scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.

“If you’re considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited.”

In the final stages of the Scrappage Scheme manufacturers will be apportioned order quotas to aid an orderly close down.

Notes to editors:

· Government will write to all manufacturers formally to agree these changes so the Scheme can run up until the end of March.

· By 24th January 330,722 new vehicle orders were taken under the Scrappage Scheme since it was announced in the Budget in April.

· Under the final stages of the Scrappage Scheme manufacturers will be apportioned order quotas to aid an orderly close down of the scheme.

· Changes to the Scheme announced in September meant:

· The Scheme was extended to vans over 8 years old rather than the previous 10 year requirement

· The age qualification for cars was changed by 6 months to extend the benefits to cars registered on or before 29 Feb 2000 (V registration)

· After listening to the needs of the industry, Government provided an additional £100 million of funding for the scrappage scheme. This was approved in October and the scheme now will cover up to 400,000 transactions.

· The scrappage scheme figures are updated on a weekly basis, with all available statistics on the BIS website here: http://www.berr.gov.uk/whatwedo/sectors/automotive/scrappage/page51068.html

DETAILS OF THE SCHEME

· The £2,000 grant is made up of £1,000 from government with matched funding from vehicle manufacturers. It applies to commercial vans (up to 3.5 tonnes) as well as cars.

· 38 manufacturers (forty one marques/brands) have signed up to take part in the Scheme: Allied Vehicles, Audi, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco , Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks , Rolls Royce, SAAB, SEAT, SECMA UK, Skoda, SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen & Volvo.

How to apply

· The 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 VEHICLE

· Car or small van not exceeding 3.5 tonnes

· Registered in United Kingdom on or before 29 February 2000, for cars or on or before 28 February 2002, for vans

· Currently registered with DVLA or DVA to the registered keeper

· Has been registered to the customer continuously for 12 calendar months before the order date of the new vehicle

· Has a UK address on the registration certificate (V5C)

· Has a current MOT test certificate or one that has expired no more than 14 days before the order for a new vehicle was placed

· Has a current tax disc or has a tax disc that has expired no more than 14 days before the time of the order

· Is insured when the order for the new vehicle is placed

NEW VEHICLE

· Passenger car or small van up to 3.5 tonnes

· First registered in the UK on or after the date the Scrappage Scheme was launched and declared new at first registration in the UK with no former keepers

· UK specification vehicle (can include left-hand drive vehicles that meet UK specifications)

· First registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk