Money News

Final days for car scrappage scheme

Time is running out for car buyers wanting a £2,000 car scrappage discount

Drivers with an old banger need to act fast to take advantage of the car scrappage scheme.

Most recent figures show the budget for car scrappage has funds for only 16,205 vehicles left, out of a total of 400,000, and it must end at the end of March.

Over the last week some 8,000 cars were scrapped.

The scheme offers a £2,000 discount on a new car when a driver sends a vehicle over ten years old in for scrappage.

A poll by the AA found just 4% of drivers have taken advantage of the scheme but 22% are considering it.

Mark Huggins, director of AA Financial Services, said: “Although there’s not much time left, now is a perfect time to trade in your old car.”

However, some drivers may be holding out until April and the new ‘10’ number plates, when the best option to get a discount is simple bartering.

Mr Huggins said: “When the scheme ends, its value will simply be what you can barter on the forecourt and the chances are it could up at the breaker’s yard in exchange for just a few pounds.”

Chris Eagle, commercial manager at Creditchoices.co.uk, said: “Getting the best deal on a new car, with or without the scrappage scheme, is a matter of shopping around.

“Firstly shop around dealers for the best deal on the car and then shop around for the best car loan to pay for it. Forecourt finance may seem easy, but it can really push up the cost of a new car.”