Budget introduces £2000 metal scrappage scheme

May 8, 2009 at 3:01 pm

In his budget last week Chancellor Alistair Darling introduced a scheme welcomed by the scrap metal sector whereby motorists will receive a £2000 discount when they trade in a vehicle over 10 years old for a new one.

The scheme applies not only to cars but also to commercial vans of up to 3.5 tonnes. The £2000 on offer will consist of £1000 from the government and £1000 from the motor manufacturer.

It is hoped that the initiative will assist the flagging automotive industry which has suffered badly from falling sales due to the recession, the scrap metal industry which is experiencing a reduction in volume, the motorists who are having to tighten their belts and of course the environment which will benefit from getting the heavily polluting older cars off the road.

Dealers will be responsible for the paperwork involved in administering the scheme and for organising the scrapping of the old vehicles.

As with any scheme which the government introduces there are of course critics. There is, for instance, concern within the scrappage industry that dealers who are not members of Autogreen and Cartakeback will be discriminated against and environmentalists have also waded in saying that there is life left in many 10 year old cars and so to scrap them is just pouring money down the drain.

Motorists themselves are anxious that the motor industry will try to claw back their contribution by reducing the discount which can normally be negotiated by the purchaser. In addition, the old car needs to have a current MOT certificate which could well be a deal breaker for many.

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One response to “Budget introduces £2000 metal scrappage scheme”

  1. Tom Chance says:

    I have just started a not-for-profit car scrapping fund raising site. It can be found at It is vital that metal is treated in the right way as this article points out.

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