2021 scrappage schemes: the complete guide
With several manufacturers still offering scrappage and trade-in schemes in 2021, we explain what each one entails
‘Scrappage’ schemes were originally 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 in late 2020 suggested the UK government was considering offering 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 an incentive scheme would likely have increased new-car sales, which suffered a 97% drop in sales in April 2020 due to the closure of dealerships in the first national lockdown.
The government said it has already invested £2.5bn in electric vehicles and infrastructure, including the £2,500 plug-in car grant (PiCG) scheme, which can be claimed on electric models costing less than £35,000.
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 21-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 includes a discount of £850 against the new i10 hatchback, a £1,850 deduction on the new i20 hatchback, and £2,400 off the new i30 hatchback. The scheme also offers a £5,000 discount on the Santa Fe.
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, buyers of the all-new Hyundai Tucson SUV can save £3,000 on the petrol, mild-hybrid diesel and hybrid models.
Hyundai is also offering a £1,750 discount on the hybrid version of the Kona, and £650 on the electric model.
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 before 30 June 2021.
Read more about the Hyundai scrappage scheme here.
Kia scrappage scheme
Kia's scrappage scheme applies to the Picanto, Rio, Stonic, Niro, and Sportage models. Buyers will receive a £2,000 scrappage incentive against the Picanto or Rio and £2,500 off the Stonic, Niro Hybrid and Sportage. 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 30 June 2014. You must have owned the car for at least three months, too.
This scrappage deal is valid until 30 June 2021 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 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 1 October 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 30 June 2021.
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, Mazda6, and the new CX-30, £3,500 against the new Mazda3 and £4,000 against a CX-5 SUV. The pure-electric Mazda MX-30 is also eligible for a £2,000 discount and includes a free home charger installation. Any Mazda model that produces more than that amount of CO2 is exempt from the savings, while the 100th Anniversary editions 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 by June 30 2021
Read more about the Mazda scrappage scheme here.
Renault scrappage scheme
The Renault ‘New for Old’ Scrappage Scheme offers savings of up to £2,750 on a number of new Renault models, and is valid against all eligible models ordered by 30 June 2021. To qualify for the discount, your trade-in car or van must have been owned for at least 90 days.
You can get £2,750 towards a new ZOE, and up to £2,750 towards a new Kadjar. Renault’s hybrid Clio and Captur models qualify for up to £1,750 off, depending on the trim and engine chosen. The Megane hatchback and Sport Tourer estate lineup qualifies for a deduction ranging from £750 for the ‘Iconic’ trim model to a £2,000 discount for the Megane E-TECH Plug-in hybrid.
Customers using the Renault Scrappage Scheme must have registered their new vehicle by 30 June 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 between £2,000 and £4,000 on almost every car in its line-up - you can save on new Toyota Aygo, Corolla, C-HR, RAV4, Prius, Camry, 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, Yaris, and Hilux getting the extra bonus of 0% APR. The offer excludes ‘Active’ Hilux versions, however.
Cars or vans traded in must have been registered before or on 30 June 2013 and have been owned for over six months. To benefit from the scheme, new Toyota models must be ordered by 30 June 2021 and financed and registered by 30 September 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.
For more information and car buying advice, read our guide to best new cars to buy now.