Boris johnson is considering offering buyers incentives up to £6000, incentive to trade in their old petrol or diesel car in july 2020 for a new electric or hybrid vehicle. The new scrappage scheme is designed to help boost the uk economy and to encourage the take-up of vehicles that have lower emissions. Boris johnson is considering announcing it on july 6th 2020.
The first car scheme was launched by gordon brown in 2010. The scheme was launched to help boost the car market. It gave car buyers £2000 off a new car if they scrapped a model aged 10 years or older. The scheme lasted ten months and enabled 390,000 new cars to be purchased. The uk government currently offers a plug–in car grant which gives you up to £3000 off.
The car industry which was down 97 percent in april and 89 percent in may due to the covid-19 pandemic. If this new scheme is announced on july 6th 2020, it could help kickstart the new car market also it could help to boost production demand.
Last week the german government announced that it will double its share of the existing purchase incentive for EVs and hybrids, paying a grant of €6000(£5,370) for a pure EV in addition to an OEM-backed subsidy of €3,000(£2,685). That announcement came less than a week after france said that it was now poised to increase the state-provided grant towards an EV purchase from €7,000(£6,243) from €6000(£5,342).
The UK car manufacturer bosses have been making calls for a scrappage scheme for some time now.