Car Scrap Scheme: How It Works
The car scrap scheme was launched in the UK on May the 18th 2009 and was designed to help boost the UK car industry. Owners of vehicles which are more than 10 years old are entitled to £2000 off the price of a brand new vehicle. Despite some initial criticism more than 38 manufacturers signed up for the scheme but many have been left asking how does the scheme work?
Put simply the new scrap car scheme works on a grant basis whereby both the government and the individual car manufacturer put forward £1000 towards the discount on the new vehicle. In order to make use of the new scheme vehicle owners must also go through several formal checks.
What’s required?
Firstly the scheme is only applicable to cars and vans under the weight of 3.5 tons. Vehicles must also have been registered before the 31st of July 1999 and does include the late T registered number plates. Vehicle owners must also be the registered owner of that vehicle for more than one year before they can take advantage of the scheme. The vehicle being exchanged must have a valid MOT certificate.
How To Take Advantage
To take advantage of the scheme people must take their old vehicles to the dealer and provide them with the necessary documentation. This includes log books and MOT certificates. The dealer will then check the documents and the vehicle and once accepted will be sent off to the scrap car yard of their choice.
Dealers must also be presented with a car scrap voucher from the government. This entitles them to the grant.
The scheme runs until February 2010 and £300m has been assigned by the government to the scheme. The scheme not only benefits car users but also the car salvage dealers who have seen a sharp increase in market value.
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