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We will continue to update and add to these FAQS where it becomes clear further information would be helpful.
The Government announced on 4 February that an extra month has been added to the deadline for the Government scrappage scheme to allow manufacturers and dealers more time to prepare for and operate the exit phase of the scheme. Subject to agreement by manufacturers (consumers should check with dealers that the relevant manufacturer has agreed) the Government scrappage scheme will now run until 31 March 2010 or until the money runs out, whichever is the sooner.
No – eligibility criteria and the budget remain the same.
For customers the order process will stay the same. However, as has already been announced, in the final stages of the Scrappage scheme manufacturers will be apportioned potential order quotas to aid an orderly close down.
It has been announced that the final phase of the Scrappage scheme begins on 24 February.
In this final stage of the scheme manufacturers have strict potential order quotas. To avoid disappointment consumers are urged to place their orders quickly, particularly if they have a specific car in mind. However there will be small further allocation towards the end of the scheme for those manufacturers that have proved particularly popular with consumers. It is likely that your dealer will be keeping a waiting list for these.
Yes, provided the new vehicle is delivered within four months of the order being placed and all the other scheme criteria are met.
Two changes were announced on 28th September:
Because of plans for additional funding by the Government and manufacturers, the Scheme will now cover up to 400,000 transactions.To ensure all 10 year old cars will qualify for the scheme, the date by which vehicles must have been registered in the UK in order to qualify for the scheme has been changed to 29 February 2000 (V registration) except in the case of vans where the date has been changed to 28 February 2002 up to and including a 51-plate. (In other words, in addition to everything T-plate or earlier, we are now including V, W, X, Y and 51 plate vehicles in the vans not exceeding 3.5 tonnes category.)
Vehicles in the N1 category which are designed for the transport of commercial goods (and which do not exceed 3.5 tonnes).
All other existing rules of the Scheme will remain, and you will need to meet these in order for your vehicle to qualify.
For the Scrappage Scheme, you will need your:
If you have lost any of these documents or the information in them is not up-to-date you will need to get a replacement showing the correct details before participating in the scheme.
The dealer may require further documentation if, for example, you also require a finance deal to purchase the new vehicle.
The dealer should retain the V5C and the MOT Test Certificate when the old vehicle is handed to the dealer for scrapping. (If the old vehicle is to be collected from your house by the Authorised Treatment Facility scrapping the vehicle, the dealer should take a copy of the V5C and the MOT Test Certificate). When you do this, you should complete Section 9 of the V5C and return it to the DVLA. The dealer will need to take copies of other documents, such as proof of insurance.
For the purposes of the scrappage scheme, the dealer needs to satisfy themselves that the person is who they say they are and is the registered keeper of the old vehicle. A photo driving licence or a Passport is likely to be the most convenient forms of ID to use for this purpose. The dealer may require a certain type of ID if, for example, you also require a finance deal to purchase the new vehicle.
You will need to provide proof of your own identity (see above) and evidence that you have authority to act on behalf of the company (for example, a letter of authority on headed notepaper signed by the Finance Director).
No. Cars and vans not exceeding 3.5 tonnes are eligible (vehicle categories M1 and N1 respectively).
No, only cars and light vans qualify.
No, kit cars are excluded, as are vehicles with Q plate registration plates.
Yes, providing the vehicle is a car or light van.
Yes. There is no restriction on a car being traded in to get a discount for a van or vice versa.
No, there is no limit to the number of times a business or individual can take advantage of the scheme so long as in each case the vehicle and business/individual can meet the criteria of the scheme. However, only one scrappage subsidy can be given per new vehicle, regardless of how many old vehicles are traded in each time.
The date of first registration in the UK is shown in section 4 (B1) of the vehicle’s registration certificate (V5C).
No. The vehicle must have been registered in the UK on or before the qualifying date (29 February 2000 for cars or 28 February 2002 for vans).
The qualifying dates for cars and vans were amended in October following a decision to extend the scheme. .
If the car or van was registered in the UK on or before the qualifying dates then it is eligible, provided all the other conditions of the scheme are met.
If the vehicle was registered in the UK on or before the relevant qualifying date and is registered in the UK now, then it is eligible, provided all the other conditions of the scheme are met.
Vehicles registered in Northern Ireland are UK registered vehicles and qualify for the scrappage scheme, provided all the other conditions of the scheme are met.
For vehicles originally registered in Northern Ireland which are subsequently re-registered in Great Britain (GB) it may not be apparent from the V5C how long the vehicle has been registered in the UK, as the DVLA record only relates to the period of registration in GB.
The dealer will need to satisfy themselves that the vehicle meets the rules of the schemes by contacting the DVA to confirm the date of first registration. Dealers should use the dedicated enquiry line (0906 5161666 – calls charged at £1.50 per minute) or email the DVA at dvlni@doeni.gov.uk. The public should use the DVA’s general enquiry line on 0845 4024000.
No. The Channel Islands and Isle of Man are not covered by the scheme.
The BIS Scrappage Team will check the registration with MOD. Please send an email headed “MOD Registration” to mailto:scrappage@bis.gsi.gov.uk?subject=MOD Registration and supply an electronic copy of the V5C or alternatively email details of the Make, Model, Colour, Vehicle Registration Number and Vehicle Chassis Number as shown in the V5C.
Yes, you do. The old style log book has been invalid since 1 July 2005.
There is no distinction between commercial or private buyers. Car dealers and vehicle manufacturers are not eligible.
No. A company and an individual are different legal entities, so if a vehicle passes from a company to an individual or vice - versa, the vehicle has changed hands and it is treated as a keeper change.
The exception to the above is a sole trader, because in effect the company and the individual are one and the same person, DVLA would not treat this as a change of keeper.
No. A company and an individual are different legal entities, so the old and new vehicles would be registered to different keepers.
No, if it is only a minor error and you can provide supplementary ID such as a driving licence, gas or electricity bill, or council tax bill, which will satisfy the dealer that you are who you say you are, and that your address is correct then there is no need to get a replacement V5C.If the dealer is any doubt, they will ask you to correct the relevant documentation.
No. The V5C document should only show a change of name, but not a change of keeper, and so is still valid under the terms of the scheme.
You must ensure that all information on the registration certificate (V5C) is correct and up-to-date and will need to apply to DVLA for a replacement showing the correct details. DVLA aims to deliver a V5C to you within four weeks of receiving your application.
The old and new vehicles will need to be registered in the same name.
When you trade in your old vehicle you should complete part 9 of the V5C and return it to DVLA to notify them that you are no longer responsible for the vehicle. The dealer will then keep a copy of the V5C. The original of the V5C goes with your car to the Authorised Treatment Facility where it will be scrapped.
If the name of the registered keeper has changed in the last 12 months then the old vehicle would not be eligible under the scheme.
Where a bereaved spouse or civil partner shares the same address as the person who was the former keeper of the car, the requirement that the old vehicle must have been registered to the keeper continuously for 12 months before the order date of the new vehicle will be cut to 6 months (on a rolling basis).
In addition to complying with other rules of the scheme, the bereaved would need to produce an original or certified copy of their marriage certificate or certificate of civil partnership and of their spouse/civil partner’s death certificate for the dealer to verify and copy.
The date of 6 months would be on a rolling basis so that a bereaved spouse who re-registered the car in their name in January 2009 should qualify in July 2009 and in February in August and so on.
If you are in the situation covered by this change, you should check with your dealer whether the relevant manufacturer is participating in the scrappage scheme and has now agreed to this change.
Yes. The new vehicle must be registered at the same UK address as that at which the old vehicle was registered.
You must ensure that all information on the registration certificate (V5C) is correct and up-to-date and will need to apply to DVLA for a replacement showing the correct details. DVLA aims to deliver a V5C to you within four weeks of receiving your application.
Yes, provided the MOT certificate has expired no earlier than 14 days before the order date of the new vehicle. In such cases, you will need to make arrangements with the dealer for the collection of the old vehicle (as it could not be driven on the public highway). The dealer will also need to satisfy themselves that the paperwork and the vehicle match, and are in order.
One of aims of the scheme is to get old cars off the road. If your car does not have an MOT it is already off the road and is therefore not eligible. This requirement applies at the time you place an order for a new car under the scheme – see below for guidance on MOTs after orders are placed but before delivery of your new car.
No. At the point that you order a new car under the scheme, your old vehicle must have a current MOT Test Certificate (or expired no earlier than 14 days before the order is placed). The only exceptions are for Hackney Carriages and vehicles used on certain offshore islands (see below).
The dealer will ask you to provide documentation issued by licensing authorities who are authorised to certify a Hackney Carriage vehicle’s roadworthiness in lieu of a MOT certificate.
Vehicles do not need an MOT if they are only used on GB islands that have no road connection to the mainland. This exemption does not apply to cars used on the Isle of Wight, the islands of Arran, Bute, Great Cumbrae, Islay, Lewis, Mainland (Orkney), Mainland (Shetland), Mull, North Uist and Skye; and light commercial vans used on the Isle of Wight, the Islands of Lewis, Mainland (Orkney), Mainland (Shetland) and Skye.
Vehicles that fall within this exemption will be eligible for the scrappage scheme, providing the address of the registered keeper shown on the V5C is within an exempt area, the registered keeper has made a declaration that the vehicle is MOT exempt and is taxed and insured. As the vehicle cannot be legally driven outside the island, arrangements may need to be made to transport the car to the dealer so they can satisfy themselves that the paperwork and the vehicle match and that all is in order.
No – once the notice has come into force the car will not be eligible until the order has been lifted and/or a new MOT certificate has been issued.
The vehicle tax requirement, like the MOT requirement relates to the date you order your new vehicle, not the date of delivery. Your old car is still eligible for the scheme if it has a current MOT, or the MOT for your old car has expired no earlier than 14 days before the order. Similarly, it must have a valid tax disc or one that has expired no earlier than 14 days before order.
If you are retaining your old vehicle, you must SORN your vehicle, or buy a new tax disc within 14 days of the tax disc running out or you will be committing an offence. Also, if you have neither a MOT or road tax you cannot legally use or park the vehicle on the public road and you will need to make arrangements with the dealer for the vehicle to be collected.
Vehicles registered before 1 January 1973 (historic vehicles) are exempt from Vehicle Excise Duty. They still have to display a tax disc in the windscreen (known as a nil disc) unless they have been taken off the road, but there is no charge for this. Cars in this situation will therefore be eligible as long as they have a valid nil disc, and they meet all other Scheme criteria.
You may keep the tax disc if you wish. To get a refund you’ll need to complete a V14 ‘Application for a refund of vehicle tax’. Send the form and the tax disc to Refund Section, DVLA, Swansea SA99 1AL.
There is no need for the dealer to retain your tax disc. It is not a requirement of the scrappage scheme. However, the dealer will need to keep a copy.
No – provided the insurance for your vehicle is valid and meets the minimum 3rd party requirements, it will meet the insurance criteria under the Scrappage Scheme rules.
For further information about car tax and insurance, you should contact DVLA (in mainland G.B) or DVA in Northern Ireland.
These requirements apply at the point that you order a new car – see below for the position if your car is written off after you have placed an order under the scheme.
For cars designated category C write-offs after April 2003, if the car has a Vehicle Identity Check (VIC) marker on it, it will need to pass a VIC test, and have a replacement V5C issued, before it can be eligible for the scheme.
The Dealer will need to contact VOSA (Vehicle and Operator Services Agency) on 0300 123 9000 to find out whether there is a VIC marker on the car. If there is, then you will need to arrange to have VIC test carried out on the car. This can be done at one of VOSA’s 57 VIC testing stations nationwide. The charge for the test is £41 or £50 if the test is carried out, out-of-hours.
If the vehicle passes the test, a VIC Pass Certificate (VIC20) will be issued. You should then apply to DVLA for a replacement V5C using a V62 application form. All V5Cs issued following a VIC pass are annotated “Accident damaged and/or substantially repaired; identity checked on dd/mm/yyyy”
The VIC scheme only applies to vehicles in vehicle category M1.
The dealer will need to check with VOSA that a VIC Marker has not been set. If the dealer is satisfied that there is no VIC Marker, the vehicle is eligible providing all the other criteria of the scheme are met.
You will need to use a commercial vehicle check company such as Experian; HPI; Carweb and CDL Vehicle Information Services. These companies obtain vehicle information from a variety of different sources and charge for their services. DVLA is unable to provide any information on the write-off category of a vehicle.
Providing all the criteria of the Scrappage Scheme were met when the order was placed, including that the old vehicle was MOT'd, taxed and insured and not a Category A or B write-off, the transaction can proceed and the vehicle will remain eligible. You will need to notify your insurer in the normal way but will need to retain possession of both the vehicle and the V5C. The dealer will need to have satisfied themselves that the old vehicle qualified at the time of the order and was written-off after the order was placed. The dealer will need to arrange for it to be scrapped by an Authorised Treatment Facility and a Certificate of Destruction issued.
No – as long as the scheme criteria are met including requirements on the MOT, insurance and write-offs, your car is still eligible.
No, one of aims of the scheme is to get old cars off the road. If a SORN has been made then the vehicle, by definition, is already off the road, and is not therefore eligible. However, you may SORN your vehicle after an order has been placed and before delivery of your new car - see below.
Yes, you have the option of getting it taxed, MOT’d and insured in order to qualify before you place an order under the scheme.
Once you have ordered your car, you should SORN your vehicle if it is going to be more than 14 days between the expiry of the MOT and the delivery of the new vehicle or you need to purchase a new tax disc. Once you make a SORN you must keep your vehicle off the public road as you will be committing an offence if it is used or parked on the public road. You will need to make arrangements with the dealer for your old car to be collected once the new one is delivered.
While you remain the registered keeper of the vehicle you are responsible for any fines.
You should not sell or otherwise dispose of a vehicle until the cherished registration number has been transferred to another vehicle, or placed on retention, and a replacement V5C has been received. If you dispose of your vehicle prior to this, entitlement to display the registration number will be lost. For further information about cherished number plates, you should contact DVLA (in mainland GB) or DVA (Northern Ireland).
No. The old vehicle must be disposed of by the dealer
No. The old vehicle must be disposed of by the dealer
The scrapped vehicle should have no financial value and does not need to be shown on the invoice.
No. The old vehicle can be scrapped at anytime after the order is placed. However, should you decide to cancel your order for the new vehicle after the old vehicle has been scrapped and a Certificate of Destruction issued you will no longer have a vehicle eligible for the scrappage scheme to trade in with another dealer.
Providing all the criteria of the Scrappage Scheme were met when the Order was placed, including that the old vehicle was MOT'd, taxed and insured and not a total write off, the transaction can proceed and the vehicle will remain eligible. You will need to notify your insurer in the normal way but will need to retain possession of both the vehicle and the V5C. The dealer will need to have satisfied themselves that the old vehicle qualified at the time of the order and was written-off after the Order was placed. The dealer will need to arrange for it to be scrapped by an Authorised Treatment Facility and a Certificate of Destruction issued.
See under Write-offs above for the eligibility of cars which have been written off before an order is placed under the Scheme.
No – provided your car met all scheme criteria at the time you placed your order, it will remain eligible. You will need to notify your insurers in the normal way and arrange for the vehicle to be collected for Scrappage if the damage means that it cannot be driven.
Providing all the criteria of the Scrappage Scheme were met when the Order was placed, including that the old vehicle was MOT'd, taxed and insured and not a total write off, and where the burnt out car can be shown to be the same as that offered at the time of Order and is now physically present to be scrapped, the transaction can proceed and the vehicle will remain eligible.
The dealer will need to satisfy themselves that the recovered vehicle is one and the same as that offered at the time of order and in the log book ie doing a physical check of the chassis number. The dealer will also require a copy of the Police Crime Number to confirm that the vehicle was stolen after the Order was placed. The dealer will need to arrange for the old vehicle to be scrapped by an Authorised Treatment Facility and a Certificate of Destruction issued.
You will not be able to proceed as you need to be in possession of the old vehicle for it to be traded-in with the dealer and then scrapped and a Certificate of Destruction issued.
Only personal accessories can be removed. You may not remove tyres or the battery or add any additional waste.
You need to be licensed as an Authorised Treatment Facility (ATF) by the Environment Agency in order to treat End of Life Vehicles (ELVs). If you are already an ATF, there is no need to register separately.
The new vehicle must be a brand new UK-specification vehicle only, not previously registered and/or grey import, but can include left-hand drive vehicles that meet UK specifications. There are no models of car or van excluded from the scheme as long as they are below 3.5 tonnes, and supplied by a manufacturer participating in the scheme.
No they cannot exclude models. However, there is nothing to stop them from providing additional incentives for models they particularly want to sell.
No, there is no limit. However, you must be aware that DVLA vehicle systems do not allow a vehicle to be recorded as purchased and sold on the same date.
In these circumstances the date of sale will be recorded as the next calendar day following date of purchase.
Yes, the new vehicle has to be delivered within four months of the order being placed. This is because the scheme is time limited with a fixed budget. Dealers will let you know if the required vehicle cannot be delivered within this timeframe and discuss alternatives with you.
Yes, provided the new vehicle is delivered within four months of the order being placed, as above.
The £2000 should be taken off the “On the Road Price”, that is the full price of the vehicle including factory fitted extras, number plates, vehicle excise duty, registration fee, published delivery charge and VAT. This should be shown on the customer invoice “below the line” as a £1,000 discount from the manufacturer and a £1,000 discount from HM Government ie it should be shown as part payment of the invoiced price.
Yes, providing all the criteria of the scheme have been met, you will qualify for the £2000 scrappage incentive. For advice on VAT issues, including whether a vehicle qualifies for zero rating, you should contact the HMRC VAT Helpline on 0845 010 900.
HMRC advice is that VAT is normally due at the rate in force when a tax point is created. In the case of supplies of goods the tax point will usually be the earlier of:
The date of the order being taken will not create a tax point, so if the car is ordered before 1 January 2010 but is not delivered or paid for until, on, or after, that date VAT of 17.5% will be due. If a deposit is taken before 1 January 2010 and the balance is paid on delivery of the car on, or after ,1 January 2010 then 15% will be due on the deposit and 17.5% on the balance.
For further advice on this, please contact the HMRC VAT Helpline on 0845 010 9000.
Financing deals are eligible where the customer will ultimately own the new vehicle and where the Registered Keeper’s name and address appears on the new vehicle registration certificate. The scrappage incentive should not form part of financing arrangements or be used as a deposit. Leasing and contract hire packages are ineligible.
The same rules apply to customers as for other financing deals under the scheme. Motability customers are eligible where they are buying the vehicle on Hire Purchase terms and appearing as the registered keeper on the new vehicle registration certificate. Motability contract hire agreements will not qualify, however.
Yes, but you must ensure you comply with insurance requirements.
In these circumstances, the insurance policy for the vehicle should be in the registered keeper’s name as a non driver and the nominated person driving on your behalf clearly named on the Certificate/Policy.
For detailed guidance on this, you should contact DVLA (for mainland GB) or DVA (Northern Ireland). The Motor Insurance Bureau may be able to help if you are having trouble finding suitable insurance cover.
Yes, a third party can pay for the new vehicle, for example a spouse or parent buying a car for their partner or child. In these cases, the third party should be shown on the invoice in addition to the person acquiring the vehicle, the registered keeper.
Yes, if the vehicle is registered to an individual person but the finance is being paid for by their company, for example someone who is self-employed. Again in these cases, the third party making the payment, should be shown on the invoice in addition to the person acquiring the vehicle ie the registered keeper.
If the third party is a company providing a leasing or contract hire package where the ownership rests with the leasing or contract hire package company or a company providing any other financial scheme where the customer and keeper will not ultimately own the new vehicle and/or where the registered keeper's name and address does not appear on the new vehicle registration certificate then that would be ineligible.
Yes, providing it is not a leasing or contract hire package where the ownership rests with the leasing or contract hire package company or any other financing arrangement where the customer and keeper will not ultimately own the new vehicle and/or where the registered keeper's name and address does not appear on the new vehicle registration certificate. Again in these cases, the third party should be shown on the invoice in addition to the person acquiring the vehicle, the registered keeper.
Some providers of financing packages will require the new vehicle to be registered in the same name as appears on the finance agreement. Where a finance provider insists that a new vehicle is registered in the same name that appears on the financing agreement (and that is not the keeper of the old and new vehicles), then this arrangement would not qualify under the scrappage scheme. Consumers can choose the most suitable finance package for their circumstances.
Phone: 020 7215 5000
Email: scrappage@berr.gsi.gov.uk
Last updated 24 February 2010
