Crushing blow

What happens when the £300,000,000 earmarked for scrappage suns out?

Asked on 21 November 2009 by

Answered by Honest John
I appeared on SKY News on Sunday 6th September, urging the government to extend the scrappage scheme to the end of the year. Then start a new one for cars a year younger. The SMMT later endorsed this and on 28th September the government coughed up a further £100,000,000, and extended qualification for scrappage to cars first registered before 1-3-2000 and vans first registered before 1-3-2002. This takes some heat off the increase in VAT to 17.5% from 1st January. And, of course, on a car sold for £8,000 the Taxpayer gets back £1,043 in VAT and £55 in first registration fee on cars that would not otherwise have sold, so the scheme effectively finances itself. The next question is what happens after 1-3-2010 when sales of new cars emitting more than 130g/km CO2 will be hit with an extra CO2 based sales tax of between £110 and £950 with no scrappage scheme to lessen the blow.
Dear Honest John,

Please help me choose my next car. I would like it to have:
    Select a few terms below
Similar questions
Ever since seeing a picture of some 14,000 "scrappage" cars parked on a disused airfield, I have been appalled at the shocking waste of a useful resource this represents, and wondered what, if anything,...
My wife is in the process of changing car and she has driven both the Toyota Yaris 1.3 5 door and the Honda Jazz 1.4 both new. She is using the scrappage scheme and although the Toyota is the best deal...
Following your advice we bought a Hyundai i10 under the scrappage scheme last July. Today we had a 'phone call from the salesman offering us a new i10 in p/x for our old one and it would only cost us £499,...
 

Value my car

Save £75 on Warranty using code HJ75

with MotorEasy

Get a warranty quote

Save 12% on GAP Insurance

Use HJ21 to save on an ALA policy

See offer