As was announced until now, the incentive offers 2,000 pounds in exchange for an old car, traded in when acquiring a new one. That amount is evenly split between the UK government and the automotive companies.
To qualify for the program, the cars traded in must still be roadworthy and need to have been registered prior to August 21, 1999. The program is available only for car weighing less than 3.5 tons, both for the traded car, as well as for the newly purchased one.
The scrappage scheme will last until February 28, 2010, but it may close sooner if the 300 million pounds cap is reached. The hopes for the new program run high, both for the government and for the Society of Motor Manufacturers and Traders (SMMT), the biggest supporter of the program.
According to Paul Everitt, SMMT's chief executive, people have already started coming to showrooms as a result of the program. "There has been a good response to the scheme ahead of the official start date and industry is confident that this will be translated into additional orders," he was quoted as saying by detnews.com.
Still, detractors do exist and say that the conditions imposed by the government will limit the positive effects sought after with this campaign. "You've also got to ask what's in it for those on lower incomes who maybe can't afford a brand new car. "We're hopeful though that some motorists will see it as an opportunity to invest in a safer, greener vehicle," Adrian Tink, a service company owner.