Owners of cars and vans over 10 years old will be offered £2,000 towards the cost of a brand new vehicle as part of a car-scrappage scheme costing the Government £300 million, it has been revealed.
Hard-pressed car owners already looking for more efficient models and cheaper car insurance to save cash in the wake of the economic downturn will welcome the move, motoring groups have said.
This is how the Government's scrappage scheme will work:
:: The £2,000 grant is made up of £1,000 from the Government with matched funding from industry.
:: The scheme will operate from mid-May until March 2010 or until the Government funding has been used.
:: It applies to commercial vans (up to 3.5 tonnes) as well as cars that were registered in the UK on or before July 31 1999.
:: The scheme is voluntary, so not all manufacturers or dealers might participate.
:: Dealers will do all the paperwork for motorists participating in the scheme and arrange for the old vehicle to be scrapped.
:: The dealer will check that the vehicle being traded in, and the new one being bought, qualify under the scheme.
:: Old cars will have to be currently registered with the Driver and Vehicle Licensing Agency (DVLA) to the registered keeper making the application, or currently on Statutory Off Road Notification (Sorn).
:: The vehicle will have to have a current MoT test certificate.
:: The registered keeper will have to have been the registered keeper of the vehicle continuously for the preceding 12 calendar months before the order date of the new vehicle.
© Press Association 2009