The Scrappage Allowance/Vehicle Discount Scheme is a £300 million program, introduced as part of the 2009 budget, and involves new car buyers scrapping a car or small van that is more than 10-years old.
The UK government will offer a £1000 incentive, which is matched by the participating vehicle dealers. The discount is then deducted from the price paid for the new car.
With sales figures over 4500 vehicles for Skoda alone, clearly this is a hugely successful scheme that has the added benefit of removing potentially unsafe cars and vans from the road.
It’s also great for the environment, given many of these aging cars are nowhere near as CO2 efficient as their contemporary counterparts.
To date, the Skoda Fabia is the best selling car to scrappage customers, accounting for close to 81 per cent of the total sales.
Is this something the Australian government should look at? You tell us.