Car scrappage schemes for 2024

Taking advantage of a scrappage scheme could mean that get up to £2,000 off the price of a brand new car by trading in your old model. Here's all you need to know about the best scrappage scheme deals.

By Tom Phillips June 19, 2024

Scrappage schemes incentivise drivers to switch their older, higher polluting vehicles for shiny new emissions-compliant models by offering a guaranteed discount when you trade-in your old car for a new one.

And now that the government is committed to phasing out the sale of new petrol and diesel powered vehicles by 2035, and UK cities like London, Birmingham and Glasgow have rolled out low emissions zones, scrappage schemes are likely to be revisited in the coming years to help drivers make the jump from fossil fuel to electric power.

However, while scrappage schemes are good for grabbing headlines, and the savings available can be tempting, they don't always represent the best deal, not least because they are only available with brand new cars.

For example, it's worth checking whether other new car offers, such as finance incentives, are not always available in combination with scrappage schemes. Likewise, you may pay less by part-exchanging your current car - especially if it's worth more than the amount offered by the scrappage scheme. Buying a nearly-new car could yield bigger savings than you get with a scrappage deal, too.

Scrappage schemes offer a way for owners of older and less efficient cars to escape future diesel charges, as you'll be trading in a vehicle that would be subject to emission zone charges in London, Birmingham and potentially other cities, for a car that complies with all of those requirements.

The discounts can be used to reduce the overall price of a brand new car that you pay for in cash, or as a deposit on a finance agreement for a brand new car. Read on for our guide to the best-value scrappage schemes.

Scrappage deals 2024

Fiat e-GRANT 2024

Discount available £3,000
Registration deadline Purchased between 1 January 2024 and 30 December 2024

Available models

 

The Fiat e-Grant is designed to encourage more people in making the switch to driving electric vehicles. Rather than a scrappage scheme, the e-Grant follows on from the £1,500 Plug-in Car Grant offered by the UK government until June 2022. The Fiat e-Grant saves £3,000 from the retail price of an electric Fiat 600e or Fiat 500e.

Peugeot Switch Grant 2024

Discount available Up to £6,500
Registration deadline Purchased between 17 April 2024 and 1 July 2024

Available models

 

The Peugeot Switch Grant is designed as an incentive to encourage buyers to ditch their petrol and diesel-powered cars and move to an electric alternative. The offer applies to the Peugeot e-208, Peugeot e-2008, Peugeot e-308 and Peugeot e-308 SW ranges, and is often available in conjunction with other incentives, including 0% APR finance, and extra money off for buying online. 

London ULEZ 2024

Discount available Up to £2,000
Registration deadline Ongoing

The Ultra Low Emissions Zone (ULEZ) in London was expanded to all 32 London boroughs on 29 August 2023. With the expansion came a £210m scrappage scheme to help car, motorcycle and van drivers either buy a newer, cleaner vehicle, or retrofit their current one to meet the demands of the scheme.

There are various grants available, as long as you live in London and have owned your existing vehicle since at least 30 January 2022. These include £2,000 for cars and £1,000 for motorbikes, or you can opt for a smaller grant plus an annual bus pass. Volkswagen dealers in London were offering £1,750 to £4,500 off new VWs when an eligible vehicles was traded in, but this only ran until the end of 2023.

Birmingham Clean Air Zone (CAZ) 2024

Discount available Up to £2,000
Registration deadline 29th February 2024 - expansion to be announced

The Birmingham Clean Air Zone (CAZ) came into force on 1st June 2021 and with it came an initial £10m scrappage scheme to help affected residents. However, to qualify for the scheme, drivers must have been the registered keeper of their car since at least 10th September 2018, earn less than £30,000 a year, and work at least 18 hours per week in the Clean Air Zone. If all those conditions were met, you'd get either £2,000 worth of public transport travel credits, or the same towards a new car bought from Motorpoint.

Scotland Mobility and Scrappage Fund 2024

Discount available Up to £2,000
Registration deadline Now closed

The Mobility and Scrappage fund was available to eligible low-income households in specific areas of Scotland who were offered a £2,000 cash grant for scrapping an older vehicle, plus up to £1,000 towards the cost of sustainable travel options with the travel better grant. If this returns in the next financial year, we'll feature any deals here.

Which carmakers have offered scrappage scheme deals?

Many manufacturers offered scrappage schemes when the term became popular, but all have paused them for now. The most recent carmakers to axe incentives include Renault, which offered a New for Old promotion of up to £2,000 off five models in its line-up until the start of 2024, and Kia, which offered £1,500-£2,000 on three models back in 2022.

Tesla also offered a trade-in scheme where you could enter your car's registration number and VIN on Tesla's website to find out your car's trade-in value. If this was less than £2,000 you got an additional £2,000 discount when you bought a new Tesla Model 3 or Tesla Model Y.

What are the best scrappage scheme deals?

When they are available, there are big differences in the savings offered by scrappage schemes: some are poor value for certain buyers but a great deal for others. For example, most schemes simply offer a fixed discount towards a new car.

If your current vehicle is worth more than the scrappage savings, then you will be better off part-exchanging it. Compare quotes, with discounted prices of new cars and a valuation calculator for your existing vehicle.

If you need a cheaper option, then search for deals on used and nearly-new cars.

Is my car eligible for a scrappage scheme?

Every manufacturer or government scrappage scheme has different rules, but most require you to own a car that's a significant number of years old. Recent scrappage schemes have targeted petrol cars registered before 2005 and diesel cars registered before 2015.

You'll need to have owned your car for a certain amount of time to take advantage of most scrappage schemes, so don't think that you can buy a cheap used car just to flip it and take advantage of any schemes.

Scrappage schemes are often only available for limited periods of time. If you don't manage to find a deal you like in that time, don't forget that you can always part-exchange your old car for a new or used car at any time.