everything you need to know about the london scrappage scheme
Ahead of the Ultra Low Emission Zone expansion in 2021, the Mayor of London, Sadiq Khan has announced plans for a £25million scrappage scheme, aimed at helping low income car owners switch to greener alternatives. This applies particularly to those that own older and especially diesel-fuelled vehicles.
What is the Ultra Low Emission Zone?
The Ultra Low Emission Zone in London will come into effect this April, replacing the 2017 Toxicity charge of £10 for cars built before 2005 driving in Central London. The new zone will initially encompass the existing congestion charge zone, however, it will be expanded in 2021 in order to incorporate the inner London area enclosed by the North and South Circular roads. The implementation of the Ultra Low Emission Zone will mean that diesel cars that do not meet Euro 6 emission standards and petrol cars that do not meet Euro 4 emission standards will have to pay a daily tariff of £12.50 to drive within the zone. It will operate all year long, 24 hours a day and will be added to the existing congestion charge. An estimated 2.5 million cars will be affected by the new charge once the zone has been expanded, however, it is anticipated to cut harmful emissions in the congestion charge zone by 45% by 2020.
Euro 6 Emission Standards: Your car was registered on or after 1st September 2015 / the model was approved on or after 1st September 2014.
Euro 4 Emission Standards: Your car was registered on or after 1st January 2006 / the model was approved on or after 1st January 2005.
London Scrappage Scheme
As part of the #LoveCleanAir campaign, city leaders are calling on the UK Government to set significant clean air objectives, proposing that the Government provides a £1.5 billion fund for a national vehicle upgrading scheme, in addition to making the World Health Organization suggested air pollution limits a legal requirement, to be achieved by 2030.
At the National Clean Air Summit last week, Sadiq Khan announced his plans to launch a £25million scheme aimed at helping businesses and residents of London scrap their older, more polluting vehicles in favour of more efficient alternatives.
Speaking on the impetuses for the scheme, the Mayor said, “Our country’s filthy air is a national disgrace that shortens lives, damages our lungs and severely impacts our NHS.”
The proposed £25million fund will be added onto the £23million being put towards a scheme launched in December 2018 that aims to incentivise businesses that operate in the ULEZ with ten or fewer employees, scrap their vans that do not meet the Euro 6 standards. This means that a total of £48million is going towards helping those that would otherwise be unable to afford it, upgrade to cleaner vehicles. This final budget will be presented to the London Assembly on 25th February and with approval, the scheme could be rolled out later this year.
Car Manufacturer scrappage schemes
A number of car manufacturers are also operating their own internal upgrade scheme to encourage customers to swap out their diesel cars for low emission alternatives. The car you are trading in must meet the Euro 1 – 4 emission standards. The following manufacturers are offering the following schemes:
| Manufacturer | Offer | Trade in qualifications | Models eligible on offer |
|---|---|---|---|
| Hyundai | Up to £4000 off a new vehicle | Car must have been registered before 01/10/2011 and meet Euro 5 standards or less | i10 1.0; i20; ix20; i30; i30 N Line; i40; Tuscon; Santa Fe; Ioniq Hybrid; Kona |
| Kia | Up to £3000 off a new vehicle | Car must have been registered before 31/03/2012, and meet Euro 5 standards or less | Picanto; Stonic; Niro |
| Mazda | Up to £6000 off any Mazda model that emits less than 136g/km of CO2 | Car must have been registered before 31/12/2010 | 2; 3 (petrol & diesel); 6 (petrol & diesel); CX-3; CX-5 |
| Renault | Up to £3000 off a new vehicle | Car must have been registered before 31/03/2012 and meet Euro 5 standards or less
motorly is a credit broker, not a lender. Rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £5,500 over 48 months with a representative APR of 22.9% the amount payable would be £287 a month, with a total cost of credit of £1406 and a total amount payable of £6906. |
|
| Toyota | Up to £2500 off a new vehicle | Car must be more than seven years old and you must have owned it for at minimum of 6 months. | Aygo; Aygo (2018); Yaris; Yaris Hybrid; Auris; RAV4; RAV4 Hybrid; C-HR; C-HR Hybrid; Prius; GT86 |
motorly is a credit broker, not a lender. Rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £5,500 over 48 months with a representative APR of 22.9% the amount payable would be £287 a month, with a total cost of credit of £1406 and a total amount payable of £6906.