Sunday, April 26, 2009

Q & A : THE NEW CAR SCRAPPAGE SCHEME

The government wants people to scrap their old cars and buy new ones
The chancellor announced a new scheme in the Budget to offer a £2,000 discount when a car which is 10 years old or more is scrapped and a new car bought.
BBC Radio 4's Paul Lewis has examined the detail and explains how you can benefit.
What age does the old car have to be?
The initial documents published with the Budget specified it had to be registered no later than 31 July 1999.
But a spokeswoman for the Department for Business, Enterprise and Regulatory Reform told the BBC that it was intended to include all cars with a T prefix number-plate.
However, the T prefix was used until 31 August 1999, potentially excluding many vehicles registered in that month.
No clarification has yet been issued. Until one is, assume that the old vehicle must have been registered by 31 July 1999 at the latest.

Can I buy a demonstration car?
The car you buy must be brand new and you must be the first registered keeper.
So if the garage has already registered it you cannot buy it under the scrappage scheme.
The car must not be a grey import and must have a UK specification.

Can I swap my son or daughter's old banger for a new car for me?
Not normally. The person buying the new car also has to be the registered keeper of the new vehicle.
So either you have to be the owner of your teenage child's car. Or you have to give them the money to buy the new car.

Can I buy an old banger and then use it to get £2,000 towards a new vehicle?
No. You must have owned the old vehicle for 12 whole calendar months before the new car is ordered.

Is the £2,000 on top of any other discount or the trade-in value of the old car?
No. The rule is that the garage must offer you at least a £2,000 discount, half of which the manufacturer will pay. The government provides the other half.
It is up to the dealer to offer you more than that but the rest will not be subsidised.
As new car sales are down it is worth negotiating for a further discount.

Can the garage sell my old vehicle back to me?
No. The old vehicle cannot be sold to anyone. It has to be scrapped and the government will be checking that they are.

Does it cover motorbikes?
No. The scheme covers cars and light vans up to 3.5 tonnes. You can swap car for car, van for van, or van for car or vice versa.
I have a van for my business. Can I use that?
All private and business vehicles can participate in the scheme as long as they fulfil the other conditions.

I live abroad. Can I bring my car to the UK to take part in the scheme?
No. The car has to be registered in the UK and the registered keeper has to have a UK address.

Can I swap two old cars and get £4,000 off?
No. You can use two qualifying old cars to buy two new cars. But you cannot use more than one old car for one new car.

Will my old vehicle qualify if it is off the road?
Any vehicle must be legal to qualify. So if it is legally off the road with a valid Statutory Off Road Notification (SORN) document then it will qualify.
In that case it does not need to have an MOT certificate or insurance. A vehicle that is taxed must be insured and have a valid MOT. Other vehicles will not be eligible.

Do I have to buy a new vehicle which has low emissions?
No. You can buy any new car as long as the manufacturer is participating in the scheme.
No information is available yet as to which manufacturers are but it is expected that all the major mainstream manufacturers will take part.

When does the scheme begin?
It will start around the middle of May and you must wait until it starts to order your new car.
The scheme will end when the £300m set aside runs out - which is 300,000 vehicles scrapped - or the end of February, whichever happens first.

How do I get the discount?
The dealer will sort out all the paperwork and the £2,000 discount will come straight off the price of the car.

This Q&A is based on information provided by the Department for Business, Enterprise and Regulatory Reform which is responsible for the scheme. The BBC cannot accept any responsibility for their accuracy
BBC NEWS REPORT.

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