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Car scrappage scheme UK 2021

You can get a ULEZ, CAZ and Euro 6 compliant vehicle in exchange for your old diesel or petrol car through a car scrappage scheme. Learn more about the deals available in 2021 from London's TfL, Hyundai, Toyota and more.

The ease in COVID restrictions has led to traffic levels returning back to pre-pandemic level [1] and a steady increase in the amount of car emissions.
To combat air pollution, the government announced a ban on the sale of diesel and petrol cars from 2030 onwards and many cities have started implementing clean air zones to charge vehicles that fail to meet the minimum emission standards. Another initiative to improve air quality was the introduction of a government car scrappage scheme on used and old cars.
Due to its popularity, the car scrappage scheme has expanded to other vehicles as well, and many are now providing a van scrappage scheme and deals for motorcycles, HGVs and commercial vehicles.
Currently, the following city council and manufacturers are offering a car scrappage scheme: Birmingham City Council London’s TfL Hyundai Kia Lexus Mazda Renault Toyota

What is a car scrappage scheme?

Car scrappage scheme was first introduced in 2009 to encourage vehicle-owners to scrap their old and polluting vehicles, in exchange for a guaranteed discount on a new and more eco-friendly vehicle. The trade-in deal aims at decreasing vehicle emission levels, as well as boosting sales for manufacturers.
Over time, car manufacturers have started offering this government-backed vehicle scrappage scheme as well. This year, besides London and Birmingham city council, six manufacturers are offering a part-exchange through the car scrappage scheme 2021. The discount offered will vary but you can expect to save from anything between £1,000 - £5,000.

What cars qualify for scrappage scheme?

The main criterion for your car to qualify for a car scrappage scheme is your car’s age. Your car’s age determines if it’s European emission standards compliant or not.
The car’s condition isn’t as important as the amount of emissions it produces because the scrappage schemes were introduced to encourage motorists to trade in their old and polluting vehicles for new and greener ones. So if you’re driving an old, low-value vehicle, a car scrappage scheme can be exactly what you need to save a few extra pounds. However, if your vehicle is labelled as Cat D by your insurer, you might not be eligible for these schemes.

How does the vehicle scrappage scheme work?

Different manufacturers and city councils have different terms and conditions for their car scrappage scheme.
If you buy a car using a government-backed scrappage scheme, you may be allowed to buy any Euro 6 compliant car that meets the needs of the scheme. If you buy a car through a manufacturer’s scrappage scheme, you can only buy a new car offered by that manufacturer. Different scrappage scheme providers will have different requirements – this could be related to the owner of the vehicle and how long you need to have owned the vehicle before trading it in, when was the vehicle first registered and which vehicles you’re allowed to trade in. You’ll also need to provide certain documents as proof so make sure you have these ready. Finally, these schemes are available for a limited time only and their end-date differs, so make sure you make use of the scheme before the offer expires.
UK government car scrappage scheme 2021

Birmingham’s vehicle scrappage and travel credit scheme

Birmingham City Council introduced its own vehicle scrappage scheme (worth £10 million) a few weeks before its Clean Air Zone (CAZ) started, from 1 June 2021 onwards.
You’ll be eligible for Birmingham’s car scrappage scheme if: • You’re the registered owner or keeper of a non-compliant vehicle since 10 September 2018 (copy of V5C required for proof) • You work at least 18 hours per week in Birmingham’s Clean Air Zone - within A4540 Middleway (letter from your employer required as proof) • Your annual income is £30,000 or less (copy of payslips, a P60 or a tax return as proof) With the scheme, you’ll be eligible for a £2,000 grant which you can use as ‘travel credit’ in the form of a Swift travel card for West Midlands trains, buses and metro or to buy a new car that meets Birmingham Clean Air Zone’s emission requirements from the dealership – Motorpoint. Applications for Birmingham’s car scrappage scheme are now open (external link)

London’s TfL ULEZ car and motorcycle scrappage scheme

London’s TfL scrappage scheme was first introduced in October 2019 to help low-income motorists switch to less polluting, ULEZ compliant cars by providing a discount.

London’s car and motorcycle scrappage scheme provides the following grants:

Motorcycles: £1,000 Cars: £2,000 You’ll be eligible for London’s car and motorcycle scrappage scheme if: • You live within the 32 London boroughs or the City of London • You claim benefits (copy of recent award letter or full Universal Credit service statement required as proof) • Your vehicle is registered with the DVLA to you or someone living at the same address as you (copy of V5C required for proof) • Your vehicle doesn’t comply with ULEZ emission standards - less than Euro 4 petrol and Euro 6 diesel compliant cars or class L vehicles • Your vehicle is insured and has an up-to-date MOT and vehicle tax (copy of vehicle insurance and MOT certificate required as proof) • You bought your vehicle before 23 October 2019 and you’ve owned it for at least 12 months TfL scrappage scheme is also available for vans and minibuses, with savings of £7,000 - £9,500 on offer, and a discount of £15,000 for heavy vehicles. You can read the full terms and conditions and apply for the car and motorcycle scrappage scheme on TfL’s website (external link).
Manufacturers’ car scrappage schemes
Following the government’s steps, manufacturers too, have started providing their own car scrappage schemes. Many manufacturers like VW, Ford, Volvo and Vauxhall have run a scrappage scheme successfully in the past, and now in 2021, six manufacturers have introduced their car scrappage deals.

Hyundai Scrappage and Emission Reduction Scheme

Hyundai’s offering their car scrappage scheme till 30 June 2021. You can exchange your old diesel or petrol car for an all-new Hyundai. The discount provided will depend on which Hyundai model you buy, with the purchase option available for i10, i20, i30, Kona - 48V mild hybrid, hybrid and electric, Tucson (all except plug-in hybrid), Ioniq - hybrid and plug-in hybrid, 2020 Santa Fe diesel and Santa Fe - hybrid and plug-in hybrid. Grants vary from £650 – £5,000, with the highest saving of £5,000 available on the 2020 diesel Santa Fe. You’ll be eligible for Hyundai’s car scrappage scheme if: • You own a diesel or petrol car that was registered before 1 July 2012 • You’ve owned the car for more than 90 days You can find more information about Hyundai’s car scrappage scheme here (external website)

Kia car scrappage scheme 2021

Kia is offering its car scrappage scheme to buyers purchasing a new Kia Sportage, Stonic, Picanto, Rio or Niro self-charging hybrid between 1 April 2021 – 30 June 2021.
The discount granted depends on the Kia model you buy and ranges from £2,000 – £2,500. All cars come with seven years or 100,000 miles warranty. You’ll be eligible for Kia’s car scrappage scheme if: • You want to trade in a car or van that’s in a good working condition • Your car was originally registered on or before 30 June 2014 • You’ve owned the vehicle for at least three months You can find more information about Kia’s car scrappage scheme here (external website)

Lexus scrappage scheme

You can get a grant of £3,500 - £4,000 if you buy a new Lexus UX, ES, NX, RX or RX L between 1 April 2021 – 30 June 2021.
If you want to purchase the new car on finance, you’d have to register and finance it through Lexus Financial Services before 1 October 2021. You’ll be eligible for Lexus’ car scrappage scheme if: • You’ve been the owner and registered keeper on the vehicle for at least six months • Your vehicle was registered on or before 30 September 2012 • You’ve owned the vehicle for more than six months You can find the full Terms and Conditions on Lexus’ website (external link)

Mazda scrappage incentive

Mazda’s scrappage incentive provides £2,000 - £4,000 savings if you buy a new 161g/km Mazda vehicle, including – Mazda2, Mazda3, Mazda6, Mazda CX-30, Mazda CX-5, Mazda MX-30 and Mazda MX-5. All these vehicles come with Mazda’s SKYACTIV Technology.
You’ll be eligible for Mazda’s scrappage incentive if: • You own a diesel or petrol car that was registered before 31 December 2011 • You or someone at the same address has been the owner and registered keeper of the car for at least 60 days • You register your new Mazda before 1 July 2021 You can find more information on Mazda’s website (external link)

Renault new for old scheme

Renault’s new for old scheme offers the chance to trade in your old passenger or LCV vehicle when you order a brand-new Renault by 30 June 2021 and register it before 30 September 2021.
The discount ranges from £1,000 - £3,000, depending upon the model you purchase. You can find the full list of cars on offer here (external website). You’ll be eligible for Renault’s new for old scheme if: • You’ve owned the vehicle for more than 90 days • You make a cash purchase

Toyota scrappage scheme 2021

Toyota is offering its scrappage scheme deal till 30 June 2021 for car and commercial vehicle owners. Under the Toyota scrappage scheme 2021, you can receive a discount between £2,000 - £4,000, depending on which new car you buy.
The offer’s available for: • Aygo • New Yaris • Corolla • Toyota C-HR • RAV4 • All-new RAV4 Plug-in Hybrid • Prius (Family) • Camry • All-new Highlander • Land Cruiser • GR Supra • Hilux (excluding Active) • Proace Range (excluding Proace Electric) You’ll be eligible for Toyota’s scrappage scheme if: • You’re the owner and registered keeper of a car or commercial vehicle that was registered before 1 July 2013 • You’ve owned the vehicle for more than six months • You order your new Toyota between 1 April 2021 and 30 June 2021 and register it by 30 September 2021 You can benefit from Toyota’s scrappage scheme in conjunction with their Finance APRs. More information available on their website (external link)

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