Government announces extra £100m towards scrappage
28 September 2009

The UK’s scrappage incentive scheme has been extended for a further 100,000 cars.

Business Secretary Lord Mandelson announced the move, which has been called for by the car industry, in his Labour Party conference speech. It will mean an extra £100m from the government towards the scheme.

"Today, I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans," Mandelson told the annual conference

See the high-res scrappage special picture gallery

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The move, which Autocar reported ten days ago, followed a formal application for an extension from the car makers' trade body, the SMMT.

“Lord Mandelson’s announcement of an extension to the car scrappage scheme is an extremely important decision that will inspire consumer and business confidence. It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable," SMMT chief executive Paul Everitt said.

"The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates.”

The £300m of government money alloted to keep the scheme afloat until next March is set to run out this October - five months early. An extension of the scheme would cost an estimated £250m extra of government money, although additional VAT payments would offset this.

The car industry has been lobbying hard for the scheme's extension because it is concerned that next January's VAT rise will otherwise knock sales.

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Under the UK car scrappage scheme a £2000 incentive is paid to motorists who scrap cars registered before 31 August 1999 to buy a new car. The government contributes £1000 and the remaining amount comes from the dealers and manufacturers.

In August, UK new car sales were up six per cent on 2008 levels but 2009 sales to date are 21.5 per cent down on last year.

Join the debate


17 September 2009

[quote Autocar]The UK’s scrappage incentive scheme could be extended to the end of May, Autocar has learned.[/quote]

Hey! That's when the election is due! What an uncanny coincidence!

Hyundai/Kia have just dispatched a bouquet of flowers to Lord Mandy and his current partner in gratitude.

17 September 2009

Isnt it also rumoured that the VAT cut may be extended too....?

17 September 2009

Ahaha! But what happens to the second hand market? Now theres a short supply of "cheap" second hand cars as they have now all been crushed.

17 September 2009

I hope they don't extend it, it's a pain in the arse.

17 September 2009

Why shoud it be extended, when other sectors of the economy are getting no help at all?

17 September 2009

Mother-in-law has a 99V VW Polo registered 1st September 1999.

Missed by one day.


Car has more holes than said packet of mints.

Should have moved the dates too.

 NeVeR L8te Smile

18 September 2009

I know that the motor industry needs help at the moment, but then so do many others as well. I'm just not sure that this "scrappage" money is going to the sort of people who really need some help in upgrading to a cleaner car. I have a friend who works for a government quango as a senior manager. I've known him for over 20 years and he's never been interested in driving or cars. He commutes from the outer London suburbs to central London for work by train and although he has a car, he doesn't use it much, having done just 350 miles in the last year, a fact of which he is quite proud. He kept his father's car after his father died having driven his previous 15 year old Fiat into the ground until it failed its MOT. The thing is that he travels everywhere by train or by cadging a lift from friends and could easily afford to buy a new car in the normal way (no mortgage, some £60,000 p.a. salary) and has only thought about buying something new becaue of the "scrappage" scheme and the £2000+ that he can get off a list price. Quite honestly I object to someone who earns twice my salary getting help to buy a new car that he doesn't really need by the use of my taxes when I have paid for my own car, that I need for work and use most days, from my taxed income. I know it sounds as though I'm being envious of his situation, but surely this scheme should be "means-tested" to exclude people like my friend who could well afford to buy their own cars at the normal price. I would not expect the taxpayer to subsidise the next car I buy and see no logical reason for this "scrappage scheme" to be applied indiscriminately to everyone who just fancies a new car just at this moment in time.

Enjoying a Fabia VRs - affordable performance

19 September 2009

[quote 130tc]Ahaha! But what happens to the second hand market? Now theres a short supply of "cheap" second hand cars as they have now all been crushed.

Scrapage only helps Kia and similar, this is meant to help all dealers but I sell cars worth in excess of £30k so someone with an old banger is not coming in to see us and therefore our used cars are costing us £4k over book to buy but then the finance houses will not lend the money as they are "over priced".

No British car maker is doing well out of this.... the money goes abroard!

20 September 2009

[quote rosstopher]I hope they don't extend it, it's a pain in the arse.[/quote]

Completely agree. Its already taken away a big chunk of the decent honest sub-£1k cars from the used market. Absoulete madness, and its making used prices go up which from a buyers point of view is bad. I could have sworn when the scheme first got introduced they promised it would not be extended once the money has ran out....

[quote drivenfromtherearplease]

Mother-in-law has a 99V VW Polo registered 1st September 1999.

Missed by one day.


Good. Sell it privately to someone who will make good use of it, don't waste a good car. You will easily get £2k of most new cars anyway just for walking into the showroom, failing that theres brokers and nearly new cars.

20 September 2009

you only need you car to be worth £1001 for it to be more worthwhile to sell privately than get a £2k scrappage deal. remember the dealers are giving £1k of their own money, they will give you that £1k whether or not you have a car to trade in, it makes no difference to them.

even if the polo was lowest spec (90k miles 3 door manual 1.0 base trim) according to glass's guide dealer trade in sale price is £1075. so total you could get £2075 trade in discount from a dealer without scrapping it. you could get more from a private sale. unless the polo is a complete wreck, but still even in poor condition you should be able to get an easy £1k for the polo private sale and the a £1k discount for buying any new car.

never look at parkers/what car for guide prices.


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