Car scrappage schemes for 2025
Taking advantage of a scrappage scheme or Electric Car Grant could mean that you get thousands off the price of a brand new car. Here's all you need to know about the best scrappage scheme and incentive deals.
Scrappage schemes and other government incentives like the Electric Car Grant encourage drivers to switch their older, higher polluting vehicles for shiny new emissions-compliant models by offering a guaranteed discount when you trade-in an old car for a new one.
And now that the government's manifesto pledges the phase out of the sale of new petrol and diesel powered vehicles by 2030, there's an Electric Car Grant available to help you get behind the wheel of a new EV. Add in the fact that UK cities like London, Birmingham and Glasgow are rolling out low emissions zones, and there's possibilities to access grants, scrappage schemes and other incentives to help drivers make the jump from fossil fuel to electric power.
It's worth saying that while scrappage schemes and grants 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.
Electric Car Grant
Discount available Up to £3,750 on new electric cars
Funding available Until 2029
On 15 July 2025, the government announced £650 million in funding aimed helping encourage drivers to go electric by giving buyers a discount of up to £3,750 if they upgrade or switch to an electric vehicle. Car manufacturers have to apply through the Electric Car Grant to register eligible models for the money, meaning that buyers don't have to do anything to benefit from the discount. Models that qualify will be announced on the government's dedicated webpage, which is updated as new cars are certified to be included in the Grant offer.
In order to qualify, the car must be sold at £37,000 or less and meet certain sustainability criteria for the full £3,750 discount. A partial discount of £1,500 will be offered on EVs that meet the cost criteria but don't achieve the highest sustainability standards.
The Grant is part of the government's £4.5 billion investment in electric vehicles, with money also being invested in more signage for charger locations, improving home charging for those without drives and switching the NHS fleet to EVs.
Fiat E-Grant 2025
Discount available £1,500
Registration deadline Ongoing
Available models
- Abarth 500e (save £1,500)
- Abarth 600e (save £1,500)
- Fiat 500e (save £1,500)
- Fiat 600e (save £1,500)
The Fiat E-Grant was launched in June 2023 as a significant discount of around £3,000 offered by Fiat when you bought one of its electric models either with cash or on a PCP deal. The firm then announced that this offer was being rolled into a permanent discount on the on-the-road price of the Abarth 500e and Fiat 500e, and Abarth 500e and Abarth 600e.
From August 2025, Fiat has reintroduced the E-Grant, giving buyers of 500e and 600e models a £1,500 discount on the OTR price. Any other existing offers like 0% APR PCP continue in addition to the discount.
Bristol Clean Air Zone (CAZ)
Discount available Up to £2,000 for car drivers
Registration deadline Ongoing
Bristol Clean Air Zone started on Monday 28 November 2022. Euro 4, 5 and 6 petrol vehicles, Euro 6 diesel vehicles, and fully electric and hydrogen fuel cell vehicles don't pay the £9 per day charge.
The introduction of Bristol Clean Air Zone was supported by a £42m package of government support, including £1.8 million of loans and grants to help people who need to change their vehicle.
Successful applicants can use the funding of up to £2,000 to trade in their vehicle and buy a second hand car from an approved dealership.
Workers who work in the Clean Air Zone and earn less than £30,000 get priority, and in order to be eligible, you must be the registered keeper of the vehicle on the V5C vehicle log book and have owned the vehicle for at least 12 months.
Scotland Mobility and Scrappage Fund
Discount available Up to £2,000
Registration deadline Now closed
The Mobility and Scrappage fund was available to eligible low-income households in Scotland located within a 20km radius of the Glasgow, Edinburgh, Aberdeen and Dundee low emissions zones. Upon a successful registration, applicants got a £2,000 cash grant for scrapping their older vehicle, plus up to £1,000 towards the cost of sustainable travel options like a bike or e-bike with a Travel Better grant.
Birmingham Clean Air Zone (CAZ)
Discount available Up to £4,000 grant package
Registration deadline Scheme expanded in March 2024
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. The scheme was extended in March 2024 with an extra £4m, and more people are now eligible to apply.
Previously, the scheme was open to people who live outside the Clean Air Zone but work within it. This continues, with the conditions being that you travel into the zone for employment purposes, earn less than £32,000 a year and work a minimum of 18 hours per week.
The scheme has also been opened up to people who live within the Clean Air Zone. As long as you received one or more of the eligible benefits within the last 12 months you can apply to the scheme.
If successful, you have three choices. You can get a scrappage grant of £2,000 paid to you when you car is scrapped, a scrappage grant of £1,600 plus £1,500 of Transport for West Midlands travel credit, or a scrappage grant of £1,000 and two Transport for West Midlands travel credits of £1,500 each, giving a total value of £4,000.
The Travel Credit is valid for two years from the date it is issued.
London ULEZ
Discount available Up to £2,000
Registration deadline Now closed
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 budget to fund a 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.
Transport for London stopped accepting applications for the scheme on 7 September, and has confirmed that over 54,000 scrappage scheme applications have been approved.
Alongside the TfL fund, Volkswagen dealers in London were offering £1,750 to £4,500 off new VWs when an eligible vehicle was traded in, but this only ran until the end of 2023.
What is the government Electric Car Grant?
The UK Electric Car Grant is part of a £650 million fund intended to make buying a brand-new electric car more affordable and encourage people to switch to an EV before new petrol and diesel car sales are phased out in 2030.
The maximum grant amount is £3750 off the car's OTR price, although a £1500 grant is available for models that partially meet the scheme criteria. Carmakers have to apply to add their models to the scheme, and only models that cost £37,000 or less are eligible.
Applications began on July 16, and the first models to qualify will be announced on August 11. However, carmakers including Leapmotor, GWM, Skywell, Hyundai and Volvo have all announced equivalent grant discounts so you don't have to wait to get behind the wheel of a shiny new EV at a discounted price.
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.