2020 scrappage schemes: the complete guide
With several manufacturers still offering scrappage and trade-in schemes in 2020, we explain what each one entails
‘Scrappage’ schemes were introduced in 2009 to encourage new car sales after the financial crisis of the previous year. The UK Government provided a £2,000 incentive to buyers who traded in their old cars for less-polluting, newer models. It certainly resulted in an increase in car sales, with the effect of increasing the proportion of more modern, less polluting cars on the road.
Fast-forward a decade and owners of some of the new cars registered during the 2009 scrappage scheme might now be tempted to scrap those as well. Incentives are now offered by manufacturers and it appears another government-backed scheme isn’t currently planned.
Car manufacturers are facing increased pressure from consumers and environmental lobby groups alike, following frequent media coverage of car exhaust emissions and the negative press surrounding diesel fuel.
This ultimately lead to the UK government announcing that the sale of non-hybrid petrol and diesel cars would be banned entirely by 2035.
No government plans for new scrappage scheme
Reports suggested the government was thinking about a £6,000 incentive scheme to get more people into electric cars, but this has been officially ruled out. It’s thought this is because of how much it would cost to implement. Such a scheme would likely have increased new-car sales, which would be welcome after a 97% drop in sales in April due to the closure of dealerships.
The government said it has already invested £2.5bn in electric vehicles and infrastructure, including the £3,000 plug-in car grant (PiCG) scheme.
While there’s no government-backed scheme, some manufacturers are still offering generous discounts if you want to trade in an older car for a brand-new 70-plate model.
Hyundai scrappage scheme
The incentives offered via Hyundai's 'Scrappage and Emission Reduction Scheme' vary across models in the company’s range. The offer extends from a discount of £900 against the i20 hatchback in Play trim (£2,400 for all other i20 trim models) to a £5,000 discount on the Santa Fe. There are savings to be had on the i30N hot hatch, with a £2,500 saving on the 271bhp model.
The scheme is advertised as the Hyundai Scrappage and Emission Reduction Scheme, but the fuel-efficient Hyundai Ioniq Hybrid and Plug-in Hybrid only qualify for a £3,000 discount. This is lower than that offered to buyers of models in the SUV range; for example, Santa Fe buyers save £5,000 and Tucson buyers save £4,000 on standard trim models, with a £2,500 saving on the sporty N Line version. The Hyundai Kona Electric and Ioniq Electric are excluded from the scheme.
To qualify, trade-in cars must have been registered on or before 1 July 2012 and have been in the buyer's name for more than 90 days. To be eligible, your new car must be registered between 1 October to 31 December 2020.
Read more about the Hyundai scrappage scheme here.
Kia scrappage scheme
Kia's scrappage scheme applies to the Picanto, Rio, Stonic, Niro hybrid, Niro PHEV and Sportage models. Buyers will receive a £2,000 scrappage incentive against the Picanto or Rio and £2,500 off the other four models. This can't be combined with any other offers available or Personal Contract Hire finance schemes.
According to the terms and conditions laid out by Kia, any car or van of any make is eligible provided it’s taxed, in good working order and originally registered before 31 December 2013. You must have owned the car for at least three months, too.
This scrappage deal is valid from 1 October to 31 December 2020 but is not available to Personal Contract Hire (PCH) buyers.
Read more about the Kia scrappage scheme here.
Lexus scrappage scheme
Lexus is offering £3,500 off the CT and UX, and £4,000 off the ES, NX, RX and RX L, potentially making it more affordable to switch to Lexus’ hybrid range. Eligible cars and commercial vehicles need to have been registered before 30 September 2012, and you must have been the registered owner for at least six months to take advantage. The scrappage scheme can’t be used in conjunction with any other offers but the savings apply to finance as well as cash buyers. The scheme runs until 15 December 2020.
Read more about the Lexus scrappage scheme here.
Mazda scrappage scheme
The Mazda scrappage scheme focuses on CO2 emissions. Applying only to new Mazda models that emit 160g/km of CO2 or less, buyers can receive a £3,000 subsidy against a Mazda2, MX-5 and the new CX-30, £3,500 against the new Mazda3 and £4,000 against a CX-5 or Mazda6. Any model that produces more than that amount of CO2 is exempt from the savings, while the 100th Anniversary editions and the new electric Mazda MX-30 are also exempt.
Participating trade-in cars must have been registered no later than 31 December 2011 and must have been in your name for at least 60 days. Trade-in vehicles will be responsibly recycled by Mazda's scrappage partner, CarTakeBack, with 95% of components saved from landfill. The scheme applies to new Mazda models registered between 1 October to 31 December 2020.
Read more about the Mazda scrappage scheme here.
MG scrappage scheme
MG’s latest scrappage scheme (called Trade Up, Plug In) offers a maximum saving of £8,000 off a new model (including the government’s £3,000 plug-in car grant). The savings vary depending on the model you pick, and now includes the MG ZS EV, the new MG 5 EV estate and the MG HS plug-in hybrid.
You can trade in any car that’s in good working order and has valid road tax, and you must have owned the car that you’re trading in for at least six months prior to placing an order.
This offer can’t be combined with any other offer, but it can be used on either cash or finance purchases.
Read more about the MG scrappage scheme here.
Renault scrappage scheme
The Renault ‘New for Old’ Scrappage Scheme offers savings of up to £3,000 on a number of new Renault models, and is set to continue until 15 December 2020. To be eligible for the discount, your trade-in car or van must have been owned for at least 90 days.
You can get £3,000 towards a new ZOE in GT Line spec (other versions get £2,500 off) and £3,000 towards a new Kadjar. Renault’s hybrid Clio, Captur and Megane models get £1,250 off, while you can save £1,000 and £750 on diesel and petrol Meganes respectively - and that includes the Renault Megane RS hot hatch. Any non-hybrid Clio and the Renault Koleos SUV are eligible for £500 discounts. The new ZOE van is exempt.
Customers using the Renault Scrappage Scheme must have registered their new vehicle by 31 March 2021 to qualify. The scheme can’t be used in conjunction with any other offer but an immediate family member can be the registered owner of the new car.
Read more about the Renault scrappage scheme here.
Toyota scrappage scheme
Toyota's scrappage scheme offers savings of £2,000 on almost every car in its line-up - you can save on new Toyota Aygo, Corolla, C-HR, RAV4, Prius, Camry, GT86 and Land Cruiser models. The Proace and Proace Verso pair are available with £3,000 scrappage savings, and you can get £4,000 off a new Supra or Hilux.
The scrappage scheme can be used on cash and finance deals, with the Aygo, Corolla, C-HR, RAV4 and Hilux getting the extra bonus of 0% APR. The offer excludes base-spec Aygo and Hilux versions, however.
Cars or vans traded in must have been registered before 30 September 2012 and have been owned for over six months. To benefit from the scheme, new Toyota models must be ordered by 15 December 2020 and financed and registered by 31 March 2021. If you’re looking to take advantage, you’ll need to be the registered keeper of the car you’re trading in.
Read more about the Toyota scrappage scheme here.
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