How is the Scrappage Incentive Scheme likely to work in the UK?
Car Dealerships would offer an additional £2k discount from the purchase price. In order to claim this back from the government they will need to prove;

  1. The scrapped vehicle was owned by the purchaser for at least a year (copy of V5 logbook).
  2. The scrapped vehicle has been deregistered with DVLA (copy of Certificate of Destruction).
  3. The scrapped vehicle is roadworthy (copy of current MOT test certificate).

Purchasers would need to scrap their car with an ELV Authorised Treatment Facility, gain a copy of the Certificate of Destruction and, take this with the V5 logbook when they buy a new car. £2,000 will be deducted from the purchase price.

Alternatively, dealerships may be able to arrange for the scrappage of the trade-in on the purchasers behalf and gain the Certificate of Destruction direct. £2,000 will be deducted from the purchase price.

The Scheme would be paid for by the VAT generated from the sale ensuring the tax-payer is not out of pocket.