I went to the local Arnold Clark car salesroom on Garscube Road to find out how the Government’s Car Scrappage Scheme was working for the local businesses and consumers.  I met with David Boyd, the Franchise Manager for Arnold Clark who told me that the scheme has been very successful for his company in supporting the car industry in these difficult economic times.

The Government is providing a £1,000 incentive, to be matched with another £1000 discount by vehicle manufacturers, meaning a £2000 discount for consumers when they replace their 10 year old+ car or light van with a brand new vehicle.

In fact, the scheme has been so successful at keeping manufacturing jobs safe in this very turbulent time, that the Government has decided to extend it. 

Speaking to the annual Labour Party conference the Business Secretary outlined the importance of the role this scheme has played in staving off what could have been a devastating blow for manufacturing and jobs.

Business Secretary Lord Mandelson said:

"There are encouraging signs that the economy is picking up. But recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry."

"The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates."

It's so important that in difficult economic times, the Government ensures that people can afford to buy in the economy and to support a return to growth.  The scrappage scheme is of indirect benefit to the envirionment too - taking thousands of old, heavy-polluting vehicles off the road. 

• Direct Gov - Vehicle discount scheme 

About the Scheme and eligibility criteria for Consumers

• Eligible old vehicle to have been registered in the UK before 31 August 1999 (“T” plate or older). The car must have a current MoT (or expired within 14 before the new car is placed) and taxed and insured and be free of finance.
• Claimant must have been the registered keeper in the UK for at least the last 12 months to prevent fraud, and ensure genuine ownership.
• The scheme allows for the purchase of brand new UK-specification vehicles only. Previously registered or “grey”/parallel imports are excluded.
• All brand new cars or light commercial vehicles up to 3.5 tonnes (N1 & M1 vehicles) are allowed.
• There is nothing to prevent consumers getting an even better deal than the discount of £2,000 - in a competitive market this is likely to happen.
• No new models of car or van are excluded from the scheme as long as they are below 3.5 tonnes, and supplied by a participating manufacturer.
• The scheme applies equally to private owners and business owners.
• Motor dealers cannot trade with themselves.  Insurance write-offs are not eligible. (vehicles that are economic write-offs that have been repaired and have a Vehicle Inspection Certificate are eligible).