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Government Scrappage Scheme reaches halfway mark

10 Aug 2009 05:43 PM

Figures released today show that the Government’s scrappage scheme has been a real success up and down the country, with orders reaching 154,927.

The regional breakdowns, available today for the first time, show that the scheme has proved popular with car buyers across the UK with take-up highest in the South East (18%), the East of England (12%), the North West (11%) and South West (11%). These figures reflect a pattern that is broadly in line with national levels of car ownership, with the highest participation rates for the scrappage scheme in regions with the highest levels of car ownership.

Lord Mandelson, Secretary of State for Business said:

"I'm pleased that we have already achieved over 150,000 new car orders. This is a great deal for manufacturers and dealers, not to mention the customers.

“The scheme has contributed to the 13.5% jump in car manufacturing and the first growth in new car registrations since April 2008.

The additional data also reveal that on average, new cars bought under the scheme have CO2 emissions that are 25% lower than the cars scrapped. The average CO2 figure for scrapped cars is estimated to be at least 179 g/km, compared to a much lower 133.9 g/km emissions average for cars bought through the scheme.

The UK scheme, with £300m from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain during the downturn and stimulate demand. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.

Notes to editors

The 154,927 orders made since the beginning of the scheme refers to the period since the Budget announcement, covering the 23rd April to 2nd August.

The regional statistics are based on orders data covering the period 23rd April to 2nd August and are based on the location of the dealership and reflect a pattern that is broadly in line with national levels of car ownership.

To view tables associated with this release, please follow the link below:

http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=405745&NewsAreaID=2&ClientID=431

The CO2 emissions figures for new cars are based on data supplied by manufacturers for the cars sold under the scheme.   Exact data for older cars are not always available, so estimates have been prepared based on best-available data.    The averages reflect the data from the first 77,000 cars ordered under the scheme.

The scrappage scheme figures are updated on a weekly basis and publicised on the BIS website here: http://www.berr.gov.uk/whatwedo/sectors/automotive/scrappage/page51068.html

The £2,000 subsidy is made up of £1,000 from government with matched funding from vehicle manufacturers. The scheme was officially launched on 18 May and will run until March 2010 or until the government funding has been used. 

It applies to cars and light commercial vans (max 3.5 tonnes) . 

38 manufacturers that have signed up to take part in the scheme:

Allied Vehicles, Bentley, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Iveco Ltd, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Renault Trucks UK Ltd, Rolls Royce, SAAB, SECMA UK, SsangYong, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen & Volvo.

How to apply

The dealers will do all the paperwork for motorists participating in the scheme and arrange for the old vehicle to be scrapped. The dealer will check that the vehicle being traded in and the new one being bought qualify under the scheme:-

OLD VEHICLE

•          Passenger car or small van not exceeding 3.5 tonnes

•          Registered in United Kingdom on or before 31 August 1999

•          Currently registered with DVLA or DVA to the registered keeper making the application

•          has been registered to the customer continuously for 12 calendar months before the order date of the new vehicle

•          has a UK address on the registration certificate (V5C)

•          has a current MOT test certificate before the date of order for the new vehicle, or one that has expired no more than 14 days before the order for a new vehicle was placed      

•          is taxed, or has a tax disc that has expired within 14 days of the order and insured

NEW  VEHICLE

•          Passenger car or small van up to 3.5 tonnes

•          First registered in the UK on or after the date the scrappage scheme is launched and declared new at first registration in the UK with no former keepers

•          UK specification vehicle (can include left-hand drive vehicles that meet UK specifications)

•          Registered to the same registered keeper as the registered keeper of the eligible vehicle to be scrapped

Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.