Car scrappage schemes explained and compared

While the government continues to drag its heels with a consultation on a prospective diesel scrappage scheme, car manufacturers have taken the decision into their own hands by offering discounts on new models when drivers trade-in older vehicles.

Hyundai is the latest manufacturer to join the scrappage revolution, following in the footsteps of BMW, Mercedes, Ford and Vauxhall.

But which deal is the best? Will people take advantage of the incentives? And what are the biggest savings you can pocket?

Which car manufacturers are involved?

Vauxhall was the first to launch a Scrappage Allowance Scheme in May, with the intention for it to run until the end of June. However, it has been extended until the end of September following a small boom in sales.

BMW and Mini were next with their Lower Emissions Incentive Scheme launched at the beginning of August, closely followed by Mercedes’ Diesel Changeover Bonus that also included a small selection of the Smart model range. Ford’s Scrappage Scheme was revealed a matter of days later. 

Hyundai has recently got in on the act with its own Scrappage and Emission Reduction Scheme that kicked off in the last week. 

All but the Vauxhall offer are due to expire on December 31st 2017. 

Are motorists likely to take advantage of the offers?

One of the main reasons Vauxhall has extended its scheme is popularity. 

Last week, the car maker confirmed that over 5,000 drivers had taken advantage of the discounts currently offered. With similar schemes running in 2015 and 2016, Vauxhall says it has scrapped more than 20,000 old cars (and shifted 20,000 new ones) through the incentive.

However, new research from independent car buying site, carwow, revealed that motorists want a significant discount if they’re to swap their old banger for a greener alternative.

More than 50 per cent of UK drivers said that they wouldn’t consider anything less than £3,000 compensation to consider a move towards cleaner vehicles, whilst one in six would be looking for a minimum of £7,000.

That’s somewhat contradictory to what Vauxhall has found, considering it is only offering a £2,000 saving on new models when you hand over the keys to an ageing motor.

Vauxhall claims to have scrapped a massive 20,000 cars over the last three years, all thanks to its Scrappage Allowance Scheme that has run for short periods since 2015

Can I trade-in my car?

Not every manufacturer-offered scrappage scheme is the same, as you’re going to increasingly find in this article. That’s not just true for the new models you could be buying but also the ones they’re willing to take from you.

Some are more lenient than others in terms of the age and emissions category, while some are restricting theirs to diesel-only trade-ins. 

Here’s what the different car brands are happy to take:

BMW & Mini: Any Euro 1-4 rated DIESEL car

Ford: Any Euro 1-4 rated  DIESEL or PETROL car or commercial vehicle registered before 31st December 2009

Hyundai: Any Euro 1-4 rated DIESEL or PETROL vehicle registered before 31st December 2009

Mercedes & Smart: Any Euro 1-4 rated DIESEL car

Vauxhall:  Any older DIESEL or PETROL car

What other trade-in restrictions do I face?

Again, not all the brands have the same restrictions beyond the fuel type and age of the car as listed above.

Some demand that you’ve owned the car for longer periods than others.

The BMW and Mini deal requires the person to have been the owner on the registration document for a minimum of 1 year, while Mercedes says it will only deal with those who have been the registered keeper of the trade-in car for a minimum of 6 months.

Ford, Hyundai and Vauxhall are more lenient, though – they only ask that motorists have kept their cars for 90 days to qualify for their offers.

All the brands will accept cars made by other manufacturers. For instance, you still qualify for the Mercedes saving if you hand over a Euro 4 diesel Peugeot or Renault. 

Which new models will I get a discount on – and how much could I save?

Again, there are plenty of inconsistencies. We’ve broken each brand down and given you a quick overview of what’s available, though we suggest visiting each manufacturer’s website to find out more if you’re interested:

BMW & Mini – restricted by emissions outputs

BMW says you can have any petrol or diesel car in the range – including Minis – with a emissions output of less than 130g/km CO2. This includes hybrids variants and electric models, like the i3 and i8. All eligible models are subject to the same £2,000 discount.

Scrap your old car with Ford and they’ll knock £4,950 off the price of a new Focus hatchback

Ford – less restricted, but varying discount amounts

Ford is being a little more generous with the range of petrol and diesel cars you can choose from, though they’re all subject to different discounts (just to make it a little more confusing).

For instance, the scrappage saving when you want a new Fiesta is just £2,000, but you can save £4,950 on a Focus if you trade-in your Euro4-or-earlier motor.

Other models include the B-MAX (excluding Zetec, with a £3,500 saving), C-MAX (£4,500 saving), Kuga (£4,000 saving) and various Transit models with a maximum discount of £7,000.

Hyundai – like Ford, more generous range but differing saving amounts

Hyundai has followed Ford’s precedent with varying discounts on different models.

The base-level i10 S city car comes with £1,545 off, while all other variants of the same model are eligible for just £1,500 off.

The bigger i20 has the same arrangement, with £2,110 off ‘S’ models and £2,000 off the rest of the i20 specifications.

Other models included in the deal include all new i30 models (£4,000 off), i40 models (£3,000 off), ix20 mini-MPVs (£2,000 off), Tucson SUVs (£3,500 off), Santa Fe 4x4s (£5,000 off) and IONIQ Hybrid models (£2,000 off).

Hyundai’s scrappage offer offers varying discounts on different models. The biggest saving is £5,000 off a new Santa Fe 4×4

Mercedes-Benz & Smart – stingiest of them all as you can’t buy petrols

Mercedes has the most restricted offering of all the brands. Only Euro 6 diesels and plug-in hybrid Mercedes models are available through the scheme – each one is also only subject to a £2,000 discount.

From the Smart range (which doesn’t have diesels), you can only get a Smart Electric Drive – which are the only pure electric cars in Mercedes’ current line-up. Disappointingly, these are only up for grabs with half the full discount amount at £1,000. 

Vauxhall – good range but not as big discounts as closest rivals

The Vauxhall line-up you can get a flat £2,000 discount on include the petrol and diesel range of the new Adam, Corsa, Astra, Astra GTC and Mokka X models. 

Which one is the best value scrappage scheme?

On paper, the BMW and Mercedes options don’t look great value, especially considering the higher cost of their cars. Vauxhall’s flat rate of £2,000 also means it isn’t the best value choice in the list.

The better options are from Ford and Hyundai. Not only will they take an older diesel OR petrol car as part of the scrappage deal, you can get the most substantial discounts on some of their popular cars – like the Ford Focus or Hyundai Santa Fe – and not be restricted to only being able to buy diesel.

If a government-backed scrappage scheme does happen, expect for it to be targeted only at the oldest diesel models

Does this mean the government won’t be launching a scheme?

Government ministers are said to be consulting on the scheme in a bid to remove as many older diesel cars from the road, but Michael Gove, who is Secretary of State for Environment, Food and Rural Affairs, has said it’s not the ideal option – possibly because it would cost the government a significant amount of money.

Instead, it is calling on councils to make a more concerted effort to reduce emissions at 81 major roads it has identified that are breaching EU air quality standards.

If a government scrappage scheme does arrive, expect it be targeted to only the oldest diesel models, which may or may not include Euro 4 cars.

The VW Group told Auto Express earlier this month that it would launch a scrappage scheme in the UK ‘shortly’

Why isn’t VW offering a scrappage incentive to drivers after the emissions cheating scandal?

Word is, they’re about to launch one. 

Earlier this month, the VW group told Auto Express that a scrappage scheme would be launched in the UK ‘shortly’, following the introduction of a trade-in offer on diesel VW models in Germany.

Owners of Euro 1 to 4 diesels – not just VW models – in Volkswagen’s home nation are being offered trade-in bonuses for new cars, with discounts amounting to up to €10,000 (£9,022) on a new Volkswagen Group vehicle.

The VW Group’s incentive in Germany is also available on new Audi models purchased before the end of 2017. 

Does the discount apply to the retail price of a new car or the price I can negotiate? 

No, all offers are on top of any discount you can already haggle on one of the eligible vehicles. 

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