Wednesday, 27 May 2009

The Van Scrappage Scheme

Since Alistair Darling's announcement on the 22nd of April 2009 about the proposed scrappage scheme, there has been lots of information about Car scrappage with adverts both in the media and on television adverts. However there has been a lot less coverage of the Van scrappage scheme.

Like the car scrappage incentive the Van scrappage scheme Darling proposed would "provide motorists with a £2,000 discount on new vehicles". The Scrappage scheme is set to incentivise all owners to trade in their older, more polluting vans for a newer, cleaner, more economical, safer model. Not only would motorists benefit but also the scheme would provide a short-term boost to the automotive manufacturing industry, retailers and the auto supply chain which had been badly impacted by falling vehicle sales.

From an environmental view point the idea is that the Van Scrappage Scheme would remove older vehicles from the road and encourage consumers to buy newer, more environmentally-friendly models. The van is then scrapped, the vehicle needs to be destroyed as so not to further pollute. The dealership from where you buy the new replacement van will arrange for collection and scrapping.

For your old van to qualify for the Van Scrappage scheme the van must meet all of the following requirements.

  • To claim the Scrappage Scheme benefits the van for scrappage must be a small van less than 3,500kg.

  • To be eligible, the vehicle you scrap must have been first registered on or prior to 31 July 1999

  • To claim the Scrappage Scheme, the owner must be the registered keeper of old vehicle for at least 1 year and the vehicle must have an up to date MOT

The scheme will be available to the first 300,000 eligible claimants or until 31 March 2010, whichever is sooner

The van Dealer must check that the old van qualifies, do all the paperwork and arrange for the old van to be scrapped.

The van Scrappage Scheme is a voluntary scheme for manufacturers, this means that not all van dealerships will be offering the van scrappage allowance. Only if a manufacturer joins the Scrappage Scheme will they give you £2,000 off a new van if you let them scrap your old one. The van scrapping scheme will run from May 18th 2009 until March 2010, or until the Government's fixed budget of £300 million runs out, so there is limited availability.

So if you have a ten year old van that has seen better days you could trade it in and trade it up for a brand-new van with a two thousand pound discount.

The Van Scrappage Scheme

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