60-second summary
The need-to-knows of car scrappage schemes:
Scrappage schemes incentivise trading older cars for discounts on new, more environmentally friendly models
There are no national schemes at the moment, but local scrappage schemes still exist
Eligibility requirements typically include the age and emissions of the car being scrapped
Some schemes offer extra benefits, like travel credits
Not all schemes offer better deals than selling your car privately, so it’s vital to compare your options.
What is a car scrappage scheme?
A car scrappage scheme offers drivers an incentive to scrap their old vehicle. Car scrappage schemes typically encourage motorists to trade in their old car for a new model at a discounted price.
Car scrappage schemes are sometimes offered by car manufacturers to attract new customers. Other schemes are run by government and local authorities, often with the aim of reducing pollution caused by older cars. These encourage drivers to switch to more environmentally friendly vehicles.
How do car scrappage schemes work?
Vehicle scrappage schemes typically run for a set period of time, and cars typically have to meet certain eligibility requirements.
For example, your current car may need to be manufactured to a specific emissions standard or be made before a certain date. And to take advantage of a particular manufacturer’s scheme, you would need to buy one of their new models.
Read on to find out more about the car scrappage deals currently available in the UK.
Is there a government scrappage scheme?
There are no UK-wide scrappage schemes running at the moment.
The government did introduce a car scrappage scheme in the UK in 2009, to help the motor industry recover after the 2008 financial crash. It teamed up with car manufacturers to offer £2,000 towards the cost of a new vehicle to anyone trading in an eligible older vehicle.
This scheme ended in 2010 and there are no plans to replace it or bring in a new national vehicle scrappage scheme at present.
More recently, the Scottish government had two scrappage schemes available, but unfortunately one is now closed to new applicants with the other set to end in early February 2025. And with the TfL car scrappage scheme closed to Londoners in September 2024, that leaves Birmingham the last local government car scrappage scheme standing.
However, there are also a couple of cities with Clean Air Zones (CAZs) offering financial support to eligible drivers looking to upgrade to a greener vehicle. Here’s how things stand at the time of writing.
TfL car scrappage scheme
The Mayor of London launched the London ULEZ car and motorcycle scrappage scheme in January 2023. Its aim was to help Londoners prepare for the Ultra Low Emission Zone (ULEZ), which was extended across all London boroughs from August 2023.
Under the scheme, Londoners on certain low-income or disability benefits who owned a car or motorcycle that didn’t meet ULEZ emission standards could apply for up to £2,000 for scrapping a car or up to £1,000 for scrapping a motorcycle. Or they could choose to receive a lower payment and get one or two adult bus and tram passes instead.
Meanwhile, qualifying wheelchair users could get a grant of up to £5,000. This could be used to scrap a vehicle that had been converted by mobility experts to be wheelchair-accessible, or to retrofit it to ULEZ emission standards.
The London ULEZ car scrappage scheme closed to new applicants on 8 September 2024 after receiving 54,000 successful applications.
Birmingham car scrappage scheme
To support people working in the city’s Clean Air Zone (CAZ), Birmingham City Council has launched the Clean Air Zone Scrappage and Travel Credit Scheme alongside independent car retailer Motorpoint.
The scheme is open to applicants who either live in the CAZ and receive certain benefits, or who earn less than £30,000 per annum and travel into the CAZ to work for at least 18 hours a week. Eligible applicants who scrap a car that would be subject to a daily fee to enter the zone can get a discount of £2,000 off a new vehicle that meets emission standards.
Alternatively, applicants who scrap an eligible vehicle could instead choose to get a lower grant towards a new vehicle but receive a higher value of travel credit to use on public transport in the West Midlands.
Car scrappage schemes in Scotland
The Scottish government launched the Low Emission Zone Support Fund alongside the Energy Saving Trust (EST) to help support low-income households in low-emission zones in Glasgow, Edinburgh, Aberdeen and Dundee.
Eligible applicants who live within 20km of a low-emission zone and receive certain means-tested benefits could get a grant of up to £2,000 to scrap a non-compliant vehicle, plus an additional £1,000 that can be put towards more sustainable transport modes such as public transport or an electric bike.
The support fund closes to new applicants on 3 February 2025. It’s unclear if it will reopen in the future.
The Scottish government also piloted a 12-month programme called the Mobility and Scrappage Fund, in partnership with the EST. It was intended for households in low-income and Air Quality Management Areas in Scotland, including the Scottish islands. However, the pilot ended in January 2024 and there are no plans to reopen it.
Clear Air Zone financial support in Bristol
Bristol City Council is currently offering subsidised loans and grants to eligible drivers to help them switch to vehicles that meet the emission standards of the Bristol CAZ.
The financial support scheme currently favours people who work in the CAZ and earn less than £30,000, as well as blue badge holders and their primary carers.
Sheffield City Council has a similar scheme in place, but it is not open to car drivers at present. However, you could benefit from it if you drive an eligible vehicle such as a van or light goods vehicle and you enter the city’s CAZ regularly.
Is there a diesel scrappage scheme?
There’s no national scrappage scheme for diesel cars. And unfortunately, there aren’t currently any car manufacturers in the UK offering to scrap your old diesel in return for a new vehicle.
Diesel cars that don’t meet RDE2 emissions standards are being targeted by higher rates of road tax, urban emission charges and in some places, even parking surcharges, in a bid to help improve air quality as concerns about pollution levels grow.
In 2023, the then Conservative government pushed back a ban on new petrol and diesel cars until 2035. However, the current Labour government has brought the date back to 2030. So, we may see more schemes and grants made available to help motorists switch to less-polluting cars.
Which car dealers are offering scrappage schemes?
Many car manufacturers, including Hyundai, Lexus, Kia, Mazda, Renault and Toyota, have offered car scrappage schemes in the past. If you want to upgrade to a less-polluting vehicle, it’s worth checking manufacturers’ websites for any new schemes, or searching for them online.
However, as it stands, at the time of writing in January 2025, there were no car manufacturers offering car scrappage schemes in the UK.
Are car scrappage schemes worth it?
It depends. It’s important to check you’re getting a good deal with any scrappage scheme. Some of the discounts offered might be less than you could get if you sold your old car privately. And buying a nearly new car might be better value than getting a new one with a scrappage deal.
It’s also worth remembering that other new car offers, including 0% car finance incentives, aren’t always available together with scrappage schemes.
FAQs
Does my car qualify for a scrappage scheme?
You’ll need to check the eligibility criteria for the scrappage scheme you’re applying for to see if your car will qualify.
Your car may qualify for scrappage schemes run by a local authority if it doesn’t comply with local low emission zones. However, even if your car does qualify, you may not be eligible unless your household meets certain criteria.
When it comes to deals run by car manufacturers, you may need to have owned your car for a certain length of time, and it may need to be a model of a certain age.
Does my trade-in car have to be in a good condition?
No, the condition of the vehicle generally isn’t important. So long as the car meets the criteria for age and emission standards, the condition shouldn’t matter.
However, if you’re applying for a manufacturer scrappage scheme, the trade-in value of your car may affect the discount you receive.
What does part exchange mean?
Part exchange is when you trade in your existing car as part payment towards the cost of a new one when you buy from a dealership. It can be a good alternative if your car doesn’t qualify for car scrappage schemes.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
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