Car scrappage scheme: complete guide

The car scrappage scheme has hit the 330,000 cars sold mark - leaving buyers seven weeks to get a £2,000 discount.

We reveal how the scheme works and what cars are eligible.

What is it?

A scheme which allows new car buyers to trade in their current car, have it scrapped and receive £2,000 towards the cost of a new car or van.

The Society of Motor Manufacturers and Traders (SMMT) and Retail Motor Industry Federation (RMIF) proposed the scheme to the government, which began on May 18, 2009.

How does it work?

Any car over ten years old which meets the requirements is eligible for scrapping � and the owner will receive £1,000 from the government and £1,000 from the manufacturer towards the cost of their new vehicle.

The scheme - as announced in the 2009 Budget - is available to the first 400,000 eligible buyers or until March 31, 2010, whichever is sooner.

Dealers will fill out the paperwork for motorists participating in the scheme and arrange for the old vehicle to be scrapped.

The scrappage incentive is voluntary so some manufacturers may not offer the £2,000 discount - check before buying.

Find out some of the cars which have been scrapped:

What are the requirements?

Old vehicles must be:

Passenger cars or small vans up to 3.5 tonnes
First registered in United Kingdom on or before February 29, 2000 (or February 28, 2002 for vans)
Currently registered with DVLA to the registered keeper, or currently on Statutory Off Road Notification (SORN)
Road legal with an MOT certificate
Registered by an owner with a full UK address
Owned by the current driver for at least 12 months

New vehicles must be:

Passenger cars or small vans up to 3.5 tonnes
Registered in the UK
Brand new without any previous keepers
A UK specification model
Registered to the keeper of the scrapped vehicle

Should you scrap your car for £2,000? Find out on Auto Trader�s scrappage site

When will it end?

The scrappage scheme began on May 18, 2009 and runs until March 31, 2010 - or until 400,000 new vehicles have been bought under the scheme.

The figure was initially 300,000 vehicles before the government extended the scheme. In January 2010 it extended the scheme by one month.

What other countries are using it?

There are currently nine countries using the scrapping scheme and this number is set to increase throughout the year.

Each country has its own requirements and offers different discounts for scrapping. For example Spain will offer a loan up to £9,100 for vehicles at least ten years old, whereas Greece will give a maximum £3,800 to scrap a car of any age.

Country	Age requirement	Discount
Austria	Over 13 years old	£1,400 to purchase a new car with Euro 4 as minimum engine specification - which has lower emissions
France	Over ten years old	£900 - £1,800 to purchase a new car which is less than 160 g/km or a van
Germany	Over nine years old	£2,300 to purchase a car up to 12 months old with Euro 4 as minimum engine specification
Greece	No age limit	£300 - £700 to scrap a vehicle plus £1,400 - £3,100 if purchasing a new vehicle
Italy	Over ten years old	£1,400 to purchase a car with at least Euro 4 engine specification which emits less than 140g/km for petrol and 130 g/km for diesel
Portugal	Over ten years old	£900 - £1,100 for a car which emits less than 140 g/km
Romania	Over ten years old	£900 to purchase a car
Spain	Over ten years old or a mileage of 155,000 miles	Up to a 0 per cent, £9,100 loan to purchase a new car or van. The car must cost less than £27,000 and emit less than 140g/km. The van must emit less than 160g/km.
UK	Over ten years old	Up to £2,000 for a new car or van

What are the benefits?

It's hoped the scrappage scheme will result in:

� Increased demand for new cars
� Savings for motorists
� Lower CO2 emissions
� More profit for car makers
� More reliable cars on the road
� Minimal job losses

RMIF Chairman Paul Williams said, �a scrappage scheme for ten-year-old vehicles could create a demand for up to 250,000 new vehicles and remove heavily polluting vehicles from our roads for ever.�

The scheme is self-financing, so the government receive VAT income from new car sales.

Can I buy a new car on Auto Trader?

Yes. Visit Auto Trader's new car homepage.

Which manufacturers have signed up?

� Abarth
� Alfa Romeo
� Audi
� Bentley
� BMW
� Citroen
� Chevrolet
� Chrysler
� Daihatsu
� Dodge
� Fiat
� Ford
� Honda
� Hyundai
� Isuzu
� Kia
� Jaguar
� Jeep
� Land Rover
� Lexus
� LTI
� Mazda
� Mercedes
� MG
� Mini
� Mitsubishi
� Nissan
� Peugeot
� Perodua
� Proton
� Porsche
� Rolls Royce
� Renault
� Skoda
� Suzuki
� Saab
� Seat
� Smart
� Ssangyong
� Subaru
� Toyota
� Vauxhall
� Volkswagen
� Volvo