Car Scrappage Scheme
The car scrappage scheme is an innovative idea launched by the government in 2009 to both stimulate the failing British car industry and curb the effects of climate change. Since the hit of the financial downturn at the start of the year, the cabinet has been looking at ways to revive the economy. By introducing a system that allows car owners to gain money towards a new car by scrapping their old model, they can ensure that all money spent on new vehicles remains within the UK. The UK government scrappage scheme ended March 2010, however come car dealers are still offering the same £2,000 off a trade-in. As always, be wary that the car your buying isn't overpriced as the dealers will have to recoup the costs of the trade in value.
The car scrappage scheme offered any potential new car buyers £2,000 off their new purchase when they trade in their old model. This figure is achieved through an equal input from both the government and the UK motor industry. It was launched in May 2009 in an attempt to buck the trend of foreign purchase and encourage prospective buyers to reaffirm their love with new cars, rather than opting for second hand vehicles.
The car scrappage scheme had enticed many big name manufacturers such as Ford, Kia, Fiat and Citroen. Although none of the above are British owned companies, they do have large factories inside the UK and harbour many working employees.
It is subject to a few standard regulations, but was effectively open to any UK resident. As long as the car was registered before 29 February 2000 and fulfils all the mandatory requirements such as MOT, tax, insurance etc, then it was eligible for the scheme. The car scrappage scheme ended March 2010 after being extended.