Scrappage loophole for clapped-out cars - Auto Trader UK - News and Reviews Hub


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Scrappage loophole for clapped-out cars

Scrappage loophole for clapped-out cars - News image

21 May 2009

by Dominic Sacco

Buyers with broken down bangers can get £2,000 towards a new car or van thanks to a loophole in the scrappage scheme.

One of the requirements for the scrappage scheme – as confirmed in the 2009 Budget – is that the vehicle has a valid MOT certificate.

But buyers who have submitted a Statutory Off Road Notification (SORN) are eligible for the grant, it was confirmed.

Cars on SORN must be kept off the road, but don’t require tax, insurance or an MOT certificate.

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

It was thought buyers could trade in a car on SORN without tax, insurance or MOT, but the Department for Business for Enterprise and Regulatory Reform (BERR) confirmed this was not the case.

It's OK for cars to have minor problems but they must have passed their MOT before they can meet the requirements of the scrappage scheme and get £2,000 towards the cost of a new vehicle.

The Department for BERR also confirmed drivers can ask a friend or relative to trade in a car for scrapping on their behalf.

The friend or relative can then transfer ownership to the buyer, who will receive the £2,000 discount without having to scrap their own car.

Applying for a SORN

Car owners who want to apply for a SORN can visit the DVLA website or call 0870 850 4444.

The reference number from the V5C registration document or V11 reminder form is required.

The maximum fine for declaring SORN and still using a vehicle is £5,000 and two years in prison.

Drivers unsure where to park a vehicle on SORN can contact their local authority.

Are you scrapping your motor for a new one? Have your say on the Auto Trader Blog

Scrappage requirements

Eligible vehicles must be:

• Passenger cars or small vans up to 3.5 tonnes
• First registered in the UK on or before July 31, 1999
• Registered with the DVLA to the registered keeper
• Road legal with an MOT certificate, tax and insurance
• Registered with a full UK address
• Owned by the current driver for at least 12 months