Car scrappage schemes

What is the car scrappage scheme?

The first car scrappage schemes were launched in 2009. The UK Government offered drivers a £2,000 incentive for trading in cars over 10 years old for newer, more environmentally friendly ones.

The scheme:

• led to an increase in car sales

• helped stimulate the manufacture of modern, less polluting cars 

• although the government incentive ended car manufacturers are still offering car scrappage trade-in deals 

The past couple of years have seen a wave of so-called scrappage schemes from manufacturers in the wake of a wider focus on vehicle emissions.

The government car scrappage scheme

In 2017 a more generous scrappage scheme as part of the UK government’s Clean Air Plan were announced. 

• the plans would offer up to £8,000 towards the purchase of a new eco-friendly car. 

• the scheme was scrapped in the final proposal in favour of plans to ban the sale of new petrol and diesel cars by 2040

• a draft plan for a Government-backed new car buying incentive scheme designed to stimulate sales and protect jobs in the wake of the 2020 coronavirus crisis was drawn up but nothing was finalised 

• In order to comply with plans to scrap emissions some manufacturers stepped up to offer thousands off a new car when trading in an old one, but many of these schemes are now closed.

The various scrappage schemes offered by manufacturers each have their own terms, conditions and benefits. 

Kia’s scrappage scheme

Buyers can get up to £2,000 off selected new Kia models when they trade in their older petrol or diesel car. Buyers are being offered a £1,500 scrappage incentive against the Picanto or Rio and £2,000 for the Stonic. To qualify, trade-in cars must have been registered before 30 September 2013, meaning they conform to Euro 5 standards or lower. The scheme ends at the end of September 2022

Kia’s scrappage scheme

Renault’s scrappage scheme

Renault is offering up to £2,000 off with its New for Old scrappage scheme. To be eligible you must have owned the trade-in car for at least 90 days. New cars need to be ordered by 3 October 2022 and registered by 31 December.

Examples include the Renault Clio, £500 and the Renault Captur, £2,000.

Renault scrappage scheme 

Is the scrappage scheme worth it?

Remember that dealers might offer their own scrappage or trade-in schemes. Some of the offers might not be available on top of other customer discounts, so it’s worth weighing up if you might get more by haggling a better deal for your new car and scrapping or selling your current car elsewhere.

How to save on car insurance 

Getting a deal on your trade in can save you money but there are other things you can also do to reduce the cost of your car insurance. 

There are some things you can do that may reduce the cost of your car insurance:

• Having a black box fitted

• Lowering your mileage

• Parking in a private driveway or garage

• Considering a multi-car insurance policy

• Choosing a car from a low insurance group

Black box car insurance

Having a black box fitted means your driver behaviour is monitored. The telematics box reports on how you accelerate, brake and negotiate sharp bends as well as what time your drive and on what sorts of roads. 

The data is analysed, and if your scores are positive, your car insurance may be discounted over time.

Lowering mileage 

If you drive fewer miles in a year this could result in a lower car insurance premium.

Parking in a private driveway

Parking in a private driveway or garage can also attract a discount. Car insurers may take into account where you park, depending where you live.

A multi car insurance policy

If your driveway is cluttered with cars, you may want to consider a multi car insurance policy

Choosing a car from a lower insurance group

The lower the value of the car and the cheaper it is repair, the less car insurance you may have to pay.