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The vehicle discount scheme – money off your new vehicle

The vehicle discount or 'scrappage' scheme is a voluntary scheme for motor dealers. If a dealer joins they’ll give you £2,000 off a new vehicle if you let them scrap your old one. The scheme will run from mid May 2009 to March 2010, depending on whether its fixed budget runs out sooner.

Vehicle scrappage scheme – final stage and last date for orders

On 4 February 2010 the government announced that an extra month has been added to the deadline for the government scrappage scheme to help manufacturers and dealers prepare for and operate the final stage of the scheme.

Subject to agreement by manufacturers (consumers should check with dealers that the relevant manufacturer has agreed) the scheme will now run until the end of March or until the money runs out, whichever is sooner. The budget remains the same and there are no changes to the eligibility criteria. 

Extra funding for scrappage scheme

On 28 September 2009, the government announced plans for a further £100 million funding for the scrappage scheme. This means that the scheme will now cover up to 400,000 vehicles.

The rules of the scheme will be unchanged except for the date of first registration in the UK. The registration date for cars will change to 29 February 2000 or before, while for vans it will change to 28 February 2002 or before.

These changes are now in effect. Consumers should check with their dealers that they have started implementing the new terms.

How to take advantage of the vehicle discount scheme

Contact your local dealer to see if they have joined the vehicle discount scheme. They will check that your vehicle and the new vehicle you want to buy both meet the rules of the scheme. When the sale is agreed, the dealer will sort out the paperwork and arrange for your vehicle to be scrapped.

The discount is deducted from the price you pay for the new vehicle and will be shown on your invoice when you take delivery of your new vehicle.

The rules of the vehicle discount scheme

The vehicle you trade in and the new vehicle you want to buy must meet certain conditions for you to be able to get the discount.

Your vehicle

The vehicle you are trading in must:

  • be a car or small van weighing up to 3,500 kilograms (kg)
  • be registered in United Kingdom on or before 29 February 2000 (cars) or 28 February 2002 (vans) (vehicle categories M1 and N1 respectively)
  • be registered with the Driver and Vehicle Licensing Agency (DVLA) or Driver and Vehicle Agency (DVA) in your name
  • have been registered to you continuously for 12 calendar months before the order date of the new vehicle
  • have a UK address on the registration certificate (V5C)
  • have a current MOT test certificate before date of order for the new vehicle (or that has expired no more than 14 days before the time of order)
  • have a current tax disc when the order for the new vehicle is placed (or that has 14 days before the time of order)
  • be insured when the order for the new vehicle is placed

The new vehicle

The new vehicle you want to buy must be:

  • a car or small van weighing up to 3,500 kg
  • first registered in the UK on or after mid May 2009
  • declared new at first registration in the UK with no former keepers

When trading in your old vehicle for a new vehicle the registered keeper for both vehicles must be the same.

For further information please email:

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