Scrappage Scheme May Not Help Motorists

16:36 Mon 24th May 2010 |

Buying a new car through the scrappage scheme will not help drivers, according to an expert.

The initiative was launched as part of a recent Budget, which saw the chancellor tell the House of Commons he wanted to help the auto industry.

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. Under the scheme, people who have owned a motor for more than ten years can trade it in for a discounted new vehicle.

An online car sales site has commented that those who are driving vehicles of this age are likely to be doing so because they do not have the capital to invest in a new one.

A spokesman for the hypermarket said: "A £2,000 subsidy doesn't automatically put a new car within their reach. In the current climate, many won't even qualify for finance to make up the shortfall."

His organisation added that the plan should be extended to used cars.

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. the car to be scrapped must meet the criteria including being registered in the UK on or before 29th February 2000, be registered with the DVLA, have a current MOT, tax and insurance.

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.

If you would like to know more about scrappage why not ask AnswerBank Motoring.

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