The Independent Automotive Aftermarket Federation (IAAF) has received confirmation from BEIS (Department for Business, Energy & Industrial Strategy) that the government has no plans to introduce a vehicle scrappage scheme.
A car scrappage scheme to boost UK vehicle sales was reported to be unlikely this week, quelling hopes of a subsidised shift towards electric cars. However, according to Calum MacRae, automotive analyst at data and analytics company GlobalData, such a move would benefit the country’s economy. “Just a few days ago, it seemed that a £6,000 new car purchase incentive scheme was close to being signed-off, but it looks like the Treasury is now considering a wider-ranging fiscal stimulus package that will forego specific incentives for the automotive sector.
Following the news that India has issued draft guidelines for setting up authorised vehicle scrapping facilities across the country, Animesh Kumar, director of research and consulting company Automotive Consulting at GlobalData, warns that the current scrappage initiative is “unlikely” to produce the desired results.
A new £23 million scrappage scheme to help take the most polluting vans off London roads has been launched to prepare for the ultra-low emission zone (ULEZ). The scheme, announced by the Mayor of London, will initially help London’s micro-businesses – defined as those with fewer than 10 employees – to switch to the cleanest vehicles, including electric.
The Ford scrappage scheme, which includes cars and CVs, is to be extended into the first quarter of 2018. The success of the scheme, which has seen over 10,500 vehicles scrapped and replaced with cleaner, more fuel efficient vehicles, is expanded to include the Ford Ranger as well as the most popular all-new Fiesta, Focus and Transit CV models.
Hyundai, Volkswagen UK and Toyota have all now announced scrappage schemes with discounts off various models, following on from Ford’s recent announcement and that of Vauxhall earlier in the year.
Hyundai’s scheme offers between £1,500 and £5,000 on trade-ins across its model range and will run from now until the end of the year. It will apply to all petrol and diesel cars with Euro 1-4 engines registered before 31 December 2009.
Ford has launched its ‘New For Old’ Scrappage Scheme where customers can save between £2,000 and £4,950 when trading in a car or between £3,650 and £7,000 off a commercial vehicle. Ford are promoting the fact that this will reduce CO2 emissions and improve fuel economy. Ford also assures customers that they will manage the scrappage of old vehicles responsibly.