The Government has begun issuing information to consumers on how to benefit from the forthcoming scrappage scheme.

Here is the latest information on the Directgov website:

The vehicle discount scheme – money off your new vehicle.

The vehicle discount or ‘scrappage’ scheme is a voluntary scheme for motor dealers.

If a dealer joins they’ll give you £2,000 off a new vehicle if you let them scrap your old one.

The scheme will run from mid May 2009 to March 2010, depending on whether its fixed budget runs out sooner.

How to take advantage of the vehicle discount scheme

Contact your local dealer to see if they have joined the vehicle discount scheme.

They will check that your vehicle and the new vehicle you want to buy both meet the rules of the scheme.

When the sale is agreed, the dealer will sort out the paperwork and arrange for your vehicle to be scrapped.

The discount is deducted from the price you pay for the new vehicle and will be shown on your invoice when you take delivery of your new vehicle.

The rules of the vehicle discount scheme

The vehicle you trade in and the new vehicle you want to buy must meet certain conditions for you to be able to get the discount.

Your vehicle

The vehicle you are trading in must:

  • be a car or small van weighing up to 3,500 kilograms (kg)
  • be first registered in the United Kingdom (UK) on or before 31 July 1999
  • either be registered or have a SORN (Statutory Off Road Notification) with the Driver and Vehicle Licensing Agency (DVLA) in your name
  • have been registered to you continuously for 12 calendar months before the order date of the new vehicle
  • have a UK address on the registration certificate (V5C)
  • have a current MOT test certificate before date of order for the new vehicle

The new vehicle

The new vehicle you want to buy must be:

  • a car or small van weighing up to 3,500 kg
  • first registered in the UK on or after mid May 2009
  • declared new at first registration in the UK with no former keepers