Arnold Clark Vehicle Management

So the Chancellor has decided to introduce a Car Scrappage Scheme after all. The scheme starts in May 2009 and is due to end in March 2010, although it could end sooner if the £300 million the Government has put aside is used up.

To get your £2,000 voucher, you have to buy a new vehicle and the vehicle you trade-in must be at least 10 years old. To avoid people just nipping down to their local scrapyard and buying an old banger for £50, the vehicle must have an MoT and must have been registered with the same keeper for the last 12 months.

Half of the £2,000 motorists are being offered is being paid by the industry. Ford have already announced a Scrappage Plus scheme where they will be offering additional incentives on top of their £1,000 contribution. Strangely, this will be on their larger vehicles - I'm sure that's not quite what the Chancellor had in mind, but even so, it's a welcome additional discount for the hard-pressed new car buyer.