It has been confirmed that the car scrappage scheme will be launched next month in order to help the UK car industry.
The new scheme will provide motorists with a £2,000 discount on new cars bought when they trade in cars bought over 10 years ago. The initiative will be time limited until March 2010.
Darling said: “I want to help the UK’s automotives industry which has been one of Britain’s success stories over the last decade but the loss of the consumer confidence in the credit crunch has led to a sharp fall in vehicle sales around the world.”
The key facts of the scheme are
- The £2,000 saving will be made up of £1,000 from the government and £1,000 from the relevant car manufacturer.
- Participation in the scrappage scheme by specific car manufacturers is voluntary.
- The scheme is expected to be introduced in mid-May.
- The scheme will run until the start of March 2010, or until all of the government funding has been used.
- The discount will be offered to consumers buying a new vehicle to replace a vehicle which they have owned for more than twelve months.
- The registered keeper must have a UK address.
- Eligible vehicles must have been first registered in the UK on or before 31 July 1999 and have a current MOT test certificate.
- Scrappage savings apply to commercial vans (up to 3.5 tonnes) as well as cars.
- The scheme will be audited by the DVLA.
- Scrappage trade-ins can only be made against new cars.