Scrappage schemes offered by car manufacturers are currently heating up the UK car market. These schemes, which offer a sum off a new car in exchange for an older car, are being promoted by almost everyone – from fringe brands such as Suzuki to mass market heavyweights Volkswagen and Ford. The German premium big three are in it too, and BMW was the first to move in the UK.
The BBC says that the scrappage deals come as car manufacturers have been under increasing political pressure to encourage consumers to buy less polluting cars, especially in Germany. As you may have guessed, it follows VW’s Dieselgate scandal, where 11 million vehicles worldwide were found to have cheated on emissions tests.
Volkswagen was one of the early movers. Its UK scheme covers all brands under the VW Group and follows a similar initiative in its home market, where discounts of up to 10,000 euros are being offered for older diesel vehicles. In the UK, VW is offering £1,800 off a new Up! city car to £6,000 off the Sharan MPV and Passat GTE, in exchange for any diesel car below Euro 5 emissions standards, registered before 2010.
Collectibles aside, these old cars don’t fetch much on the used market, so it’s an opportunity to cash in on the clunker. And if one wants to upgrade to a hybrid or EV that comes with UK’s Office of Low Emission Vehicles (OLEV) grant, incentives can be combined. For instance, a Volkswagen e-Golf can be had for £10,000 cheaper – £5,500 scrappage + £4,500 grant.
Most of the other brands have a similar requirement. Some, such as Nissan, are using scrappage to push approved used eco-friendly models such as the 24 kWh Leaf EV, while others such as Kia have excluded hybrid and EV models – with the reason that the green cars are too expensive for the majority of its scrappage scheme customers. Ditto Toyota.
There’s a whiff of stock clearance about the scrappage deals. The latest and most in-demand models are excluded from incentives (for instance, Mazda is offering up to £5,000 off everything but the new CX-5 and MX-5), while the biggest discounts are reserved for the most expensive models (Toyota Land Cruiser and Hyundai Santa Fe) or forgotten cars (up to £5,300 off the Alfa Romeo Giulietta).
The scrappage deals to get old cars off the road coincides with the European Union’s new and tougher emissions tests. All newly-launched cars will have to undergo robust “on-road” testing in addition to lab tests, before they go on sale. The new tests are said to be the most stringent in the world, and would better reflect modern driving styles.
“Combined, these new and demanding tests will soon give consumers emissions performance information that is far closer to what they experience behind the wheel. They will also inspire greater confidence that the new cars they buy are not only the cleanest, but the most fuel efficient ever produced,” said Mike Hawes, CEO of The Society of Motor Manufacturers and Traders.
Malaysia, or more specifically Proton, had a short-lived car-scrapping programme in 2009. Back then, the Proton Xchange Program offered a RM5,000 discount on a new Proton to those willing to give up their over 10-year old car. The scheme was partly funded by the government’s Economic Stimulus Plan and was very well received – Proton received over 30,000 scrap for discount applications and the government fund was exhausted in less than eight months.
Over the years, the Malaysian Automotive Association (MAA) and Malaysia Automotive Institute (MAI) have raised the topic of scrappage and its benefits. Do you think that a “cash for clunkers” programme, whether voluntary or mandatory, would work in Malaysia? In any case, the incentives have to be much greater than RM5,000 in this age of discounts.
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Now now PT my man..u giving ideas to the used car dealers la…thTs scrap thre but here its on the road in a jiffy…
Our RON95 still EURO2 la
Scrapping of old cars has nothing to do with RON.
UK offered to 1/4 off for the car price… In Mesia if no tax/duty, Suzuki Swift only rm30k, but Swift Sport with cheap accessories selling rm90k, deswai who sohai car maker in mesia willing doing charity for paying 1/4 cost of rm60k(tax)…?
Wait a darn minute. Why are you complaining about car prices? Malaysia has the cheapest car prices in the world. All car makers are willing to do this scheme
In all posts you keep on telling us Malaysia has the cheapest car prices in the world. I think Malaysians know the real truth.
Idiot, main reason for scrappage is due to pollution of E1 to E4 engine la. If the fuel is also E2 what’s the point of scrapping? Think harder moron
MY is oil producing nation, use dirty EURO2 fuel. SG no oil, use uberclean EURO5 fuel. where’s da logic?
Get real. MY oil is jet fuel grade. Using it in ur kapcai is a waste non-replenishing resource.
Wow SG cars use jet fuel grade. Lucky them
Singapore now Euro 6. Actually our Ron 95 is Euro 2M. Euro 2M is lower than even Euro 2.
Europe started Euro 3 in 1995. What has our government been doing for 22 years?
Even Indonesia, Philippines got clean petrol
Well, now is the gud time to ask the geriatric leader what happened the past 22 years aint it?
Don’t even talk about cars. In Malaysia, even fuel and Ron 95 also still at Euro 2. That is how bad situation is in Malaysia. Government has no planning and care for the Environment.
Euro 2 was banned in Europe in 1995 because it was found out that it was toxic and VERY poisonous. That is 22 years ago.
Until today, our Ron 95 is Euro 2. Filthy and dirty and worst of all, toxic and poisonous.
So, if basic petrol also our Government cannot upgrade, do you think they got time to scrap cars that are Euro 1 to 4?
Dont forget also scrappage can happen in Europe because cars are cheap. A 10 year old Mercedes E200 is like 1000 pounds. Scrapping this car, is no big deal
In Malaysia, a 10 year old E200 is still around RM100k. This is big money to most Malaysians and also big money to even a Datuk or Tan Sri.
A 10 year old Honda City idsi is already about RM25k. That is a lot of money. If it was valued at RM5k, then maybe rakyat will think about it
So, how to scrap old cars when they are worth quite a lot of money???
This boils down to the fact that Malaysia has the highest cars prices in the world and it is high time car prices come down.
We Malaysians are waiting for the 30% car price reduction our Government promised us 4 years ago.
Only when car prices go down, and 2nd hand car prices go very low, then only we can do scrappage.
Someone who reneges on a promise
Wait a darn minute. When reduced prices, u pulak hentam no RV. So mana mau ni?
Which world u came from that has bog standard cars RV higher than purchase price?
of course old cars and ron are interrelated.
No they dun. A Saga3 can use RON100 with no problem just as well as a brand new Civic.
Ahh, typo error. Not Saga3 but Saga1 (aka The Tank).
Saga3 can drink any ron, wont run more efficient & still spewing toxic Euro2 fumes
My wife use latest Saga. It consumers same amount of petrol as my Honda Accord 2.0.
We both work same place. We both drive both cars to the same place. But she leaves earlier to fetch the children. That is why we take 2 cars.
And the Saga consumers more petrol than my Honda Accord 2.0
How come? I have both cars too. My Saga consumes much lesser petrol than my Accord 2.0
No relationship between RON and sulphur content- can find RON 95 Euro 2 and Euro 5.
So wasteful scrapping Euro4 cars, yet brand new P1 only have Euro2 Campro.
Campro CFE & VVT is Euro5 compliant.
P1 kena scrap kaw kaw..
Sos : https://paultan.org/2014/09/25/proton-iriz-meets-euro-4-regulations-foreign-engines-considered-markets-euro-5/
Seems like im not allow to post external link. The gist is, reason why P1 need to develop Ricardo engine is cuz current ones cant meet Euro6 (read the 6 there) emissions. the rest of the stable is gud til Euro5.
Euro5 compliant engine is useless, since majority gas stations sell Euro2M petrol only.
It’s a good initiative. Not forcing people to scrap their cars but encouraging them to do so for those who can afford to change.
And yes… you are right… it has to be much greater than RM 5000 in this age of discounts to make any sense :D
No need to suck up to our former master for for scrapping model. Just honour the 30% car price reduction already lah.
No need cheaper cars when we r focus to enhance public transports. Save the environ for future generations.
No public transports from putrajaya to port dickson. Mau jalan kaki?
Yes there is. ERL to KL Sentral then KTM Komuter to Port Dickson. itu pun mau saya ajar kah?
Another way is take Nadi Putra bus/ Grabuber to Serdang KTM then Komuter to Port Dickson.
you take KTM to Seremban. Then you tke Grabuber.
Plan your journey well. Putrajaya and Cyberjaya are well connected
better use our cars to go about cause it uses “Jet Fuel” as you say. So our cars can fly wor
Gov shud not concern itself with this right now. Focus to gip more public transports instead and leave the car market to gauge itself. Eventually, spareparts cost for old clunkers will be more than owners can afford and they willingly will change it.
Besides, we have a enthusiastic classic car clubs that will be threatened by this law. The fact that we have a clutch of classic UK cars that even UK dun have anymore, is a testament to this dedication.
But if anybody is willing to impot here them 2nd hand UK spec non-Euro compliant, and soon to be scrapped Skylines, SXs, Zs, Evos, Imps, RXs, etc…
UK cars so cheap, scrap no problem.
MY cars so exp, duties so high.
Bodo kah? No matter how cheap it is, once these iconic cars goes to SCRAP, U can NEVER get them back. If they still in gud running condition, they shud be valued and used until rusted.
VW Polo can get £2.8k off, that’s about 1/4th price of the car.
So in Msian context, a RM35k Axia must offer at least RM8,750 scrap incentive. RM60k persona gotta offer RM15k incentive. You think can?
In your dream la. See UK do, wanna follow, but the thing don’t wanna follow is the generosity of the offer, instead give ciput incentive.
Then blame Msian stubborn, eh we not stupid ok? If the offer as generous like UK, then we can talk, else sila meninggal.
Rather than incentivise to change cars, gov shud incentivise use public transports instead.
how to use when majority families have 6 to 12 kids? Including Abah and Ibu, that is already minimum 8 kids.
Cost to go from Kelana Jaya to KLCC alone will be over RM100 per return trip
Easy. Ask everyone in that large cave famili of urs to use TnG card. Diskaun berlambak lambak. That oso I need to teach u kah?
grab Grabuber easier lah.
Grabuber only last mile connection. Trains r the future.
KL to Janda baik. Got train ka?
got train everywhere if you plan well. Got train to janda baik oso. Nearby. Then take Grab.
I hope per liter of petrol go up to RM3 then we all can use public trnsport
@Ridh1
Upcoming ECRL is for that purpose. Just have patience.
KL to janda baik? Ok later we would see basher ask train from KL even to gunung kinabalu. Lol
Exactly. Anytime i prefer permanent 50% discount on MRT, LRT fare.
Not like now. To encourage people take public transport, increase fare, kek. Topup touch n go at one time cannot even do, kek. Now can but got charge 53sen, kek.
Sunway BRT only few km long but more expensive than KJ line many times longer. Claim use bus in BRT way cheaper than using train, so where’s the cost saving? BRT now ghost line, uber/grab also cheaper than it.
Dun be lazy. Theres many mny places to topup TnG chargeless. Easiest is Pet stations. They plenty everywhere.
And to go around sunway, its cheaper to take rapidkl from KJ station lah. Theres plenty of options. Public transports is not just trains only.
Tokmoh is still dreaming . Discount ended ady, if they dun raise the price after discount then it is not called discount at first place
TnG diskaun still applies. So as children, snr citizens, students, OKU cards diskaun as well
Which is why it doesn’t make sense here. The replacement cost of a new car is too high here.
The only cars this initiative will take off the roads are those 20 year old sagas, Tiaras, kancils and other clunkers.
Please do not forget to take off the roads include all those 20 years old Toyotas, Datsun , Honda , Nissan and Mazda too
Same goes for those 20 years old Buses , lorries , pick up and trucks — to be taken off too .
Also must include 20 years old motorcycles like Honda, Yamaha and Suzuki to be taken off too.
To be taken off meaning send to be scrap yard
lets start with 40 yrs old first. mandatory scrapp, unless owner applies for classic vintage status.
anything more than 25 yrs still can use but not in the 5 main cities that are KL, JB, Melaka, Penang and Ipoh. the cars can be used in small towns like Temerloh or Tampin. Batu Gajah or Mersing.
Of which if someone can only afford to stick with those cars, they are way less likely to afford new cars. No bank will dare loan to such people, then scrap policy fails.
Its not about scrapping more than 10 years old car,its about removing unsafe vehicle from the road. Even if the gomen or car company gave me 20k for my old car, i will still need to het a loan for my replacement car.
It will keep the car industry and financial institution alive for sure.People will suffer oso for sure.
Yes its about time too, with ever increasing junk/total lost cars being left to rot and eat up parking space. With cars on the road getting more and more. it helps to reduce traffic also.
Problem is which company is willing to take up this scheme without GOV subsidy. As we all know, gov is reducing spending.
Im more than willing to trade up my old car if there is a min of RM5000
This will not work in Malaysia because the price of cars here are ridiculously high!!!!
Sapot sapott scrap car.
2020, MY developed high income nation!
Will happen….in your dreams.
The better way is to abolish all taxes currentlu imposed on both CKD and CBU vehicles then eventually nobody will drive old cars
First reduce the car prices which was promised 4 years ago and then talk about scraping car
No point reducing prices when it ends up harming the environ. Luckily PM saw that and change tracks to enhance public transports instead.
Keeping the environ for future generations is better, no?
Exora famili mpv orso reduced airbags. How to save future generations, no?
Environ is more important. I hope car prices go higher and we all use public transport.
I hope our petrol also go to RM3 per liter.
Very few times I agree with u.
But yup, gov need to use harder measures to force pipu use public transports. Maybe make it Rm3~4/L within 50km of CBD area, and normal prices in the rest of the areas.
Great idea indeed. Can free up federal highway for bikers..hehe
Thats P1 decision cuz pipu wants it. Not gov decision. So apa kena mengena?
Then there will be gridlock on every road and highway.
Reduce car price to affordable and logical level then this program works. when you purchase the car for RM200k then in 5 years the scrap value is only 1K then who can accept?
If government want to reduce traffic, then why do they need to compensate owners to scrap? Just straight away scrap with no compensation so that people would think twice about buying cars.
Say built MRT, ECRL to reduce traffic but on another hand thinking to encourage citizen to buy a new car.
Let the citizen get a taste of your so-called much improved public transport. I dont know why the government brag so much about the state of art public transport when they cant even get people to ride it to be profitable (or break even) in the first place. Spent billions but end up being worse than those era where bus mini connect tens of thousands without having Rakyat carrying the burden of billions ringgit debt incurred from these money losing public transport that only looks good on paper.
Don’t compare Bolehland with the countries mentioned. We are light years behind….
Car distributors here can give it a try.
So what if it is a stock clearance in disguise? They are already giving huge discounts on certain models. Just give more, that’s all.
Of course it will adversely affect the used car market but everything has a price. You can’t have your cake and eat it.
How can MY oil be jet grade? You mean all of us who fill up with Petronas is Jet Grade?
Ha ha ha ha
U have no idea the superior quality of MY crude oil. Pls study b4 come here tokok.