Car scrappage schemes

What is a car scrappage scheme?

Car scrappage schemes are designed to encourage drivers to scrap older, higher-emission vehicles in exchange for a financial incentive towards electric cars.

The first major UK scrappage scheme was launched in 2009 following the financial crisis and ran for a year. The UK government offered drivers a £1,000 incentive for trading in cars over 10 years old for newer, more environmentally-friendly ones. Manufacturers then matched this with £1,000 off the list price. This was intended to both help support the car industry and reduce emissions by getting older vehicles off the road.

There's no current nationwide government scrappage scheme in the UK.

Instead, modern scrappage-style incentives tend to be linked to:

• Local Clean Air Zones (CAZ)
• Low Emission Zones (LEZ)
• Regional grants or council-run schemes

These are designed to reduce air pollution in specific areas and usually focus on removing older diesel and petrol vehicles that don’t meet emissions standards.

Regional scrappage schemes

Many scrappage schemes are now closed for applications. The notable exceptions are in Birmingham and Bristol:

• Birmingham’s Clean Air Zone Scrappage Scheme offers grants of up to £4,000 for those working in the city’s Clean Air Zone (CAZ)
• Bristol City Council is offering grants and loans to help people and businesses replace vehicles which don’t meet the city’s emissions standards - including up to £1,500 for cars

Is my vehicle eligible for scrappage?

Eligibility is usually based on your vehicle’s Euro emissions standard, which often correlates with its age.

As a general rule:

• Older diesel cars (typically pre-Euro 6) are more likely to qualify
• Older petrol cars (often pre-Euro 4) might also be eligible

Eligibility rules vary depending on the scheme, manufacturer or local authority, so it’s important to check the exact criteria before assuming your car qualifies.

Kia's scrappage scheme

Kia is currently offering a scrappage scheme aimed at drivers with older vehicles. This allows eligible petrol or diesel cars to be scrapped in exchange for a discount of up to £2,500 on one of three new Kia models. Each comes with a seven-year car warranty.

To qualify, the car you're trading in needs to be aged seven years or over.

Renault's scrappage scheme

The Renault New For Old Scheme is still running at the time of writing. This gives you a discount of between £1,000 and £3,000 on a new Renault, depending on the model.

The vehicle you're swapping must have been registered on or before 31 March 2014, and you must have owned it for 90 days or more. Full terms and conditions are on the Renault website.

What documents do I need to scrap my car?

To scrap your car legally, you usually need to provide:

1. The V5C logbook, to prove ownership
2. A Certificate of Destruction (CoD), issued by an Authorised Treatment Facility (ATF)

The CoD confirms the vehicle has been scrapped correctly and protects you from future liability. Without it, you could still be legally responsible for the car.

Is a scrappage scheme worth it?

Scrappage schemes can be worthwhile, but they might not always the best financial option.

Before committing, it’s a good idea to:

• Compare the scrappage discount with the value of selling your car privately
• Check how much you could get from a scrap dealer directly
• Factor in the overall cost of the new car, not just the headline saving

In some cases, selling privately and negotiating separately can leave you better off than using a scrappage scheme.

How to save on car insurance

Buying a newer car - whether through scrappage or not - can affect your car insurance costs. To keep premiums down:

• Choose a car in a lower car insurance group
• Estimate your annual mileage realistically, and keep it low if you can
• Consider where the car will be parked overnight
• Buy your policy in good time rather than leaving it to the last minute
• Consider a black box car insurance policy, which monitors your driving and may reward safe habits with lower premiums over time

Always compare car insurance quotes so you can see quotes from a range of providers, picking the policy that suits you and your bank balance.

Find out more ways to keep your car insurance costs down.