UK scrappage schemes to get old, Euro 1-4 cars off the road well supported – should Malaysia take note?

UK scrappage schemes to get old, Euro 1-4 cars off the road well supported – should Malaysia take note?

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.

UK scrappage schemes to get old, Euro 1-4 cars off the road well supported – should Malaysia take note?

UK motorists can get the VW e-Golf for £10,000 less, thanks to scrappage and grants

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).

UK scrappage schemes to get old, Euro 1-4 cars off the road well supported – should Malaysia take note?

The forgotten Alfa Romeo Giulietta comes with the biggest discount in the FCA range

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.

UK scrappage schemes to get old, Euro 1-4 cars off the road well supported – should Malaysia take note?

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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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Recond biz aka uk scrap on Sep 08, 2017 at 4:28 pm

    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…

    Like or Dislike: Thumb up 15 Thumb down 0
    • Oh NO! on Sep 08, 2017 at 4:44 pm

      Our RON95 still EURO2 la

      Like or Dislike: Thumb up 19 Thumb down 2
      • Scrapping of old cars has nothing to do with RON.

        Like or Dislike: Thumb up 72 Thumb down 72
        • Sohai on Sep 08, 2017 at 6:08 pm

          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)…?

          Like or Dislike: Thumb up 24 Thumb down 1
          • 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

            Like or Dislike: Thumb up 1 Thumb down 45
          • Kunta Kinte on Sep 09, 2017 at 10:46 pm

            In all posts you keep on telling us Malaysia has the cheapest car prices in the world. I think Malaysians know the real truth.

            Like or Dislike: Thumb up 4 Thumb down 0
        • Sinister on Sep 08, 2017 at 6:28 pm

          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

          Like or Dislike: Thumb up 39 Thumb down 0
          • Blackpeas on Sep 09, 2017 at 5:29 am

            MY is oil producing nation, use dirty EURO2 fuel. SG no oil, use uberclean EURO5 fuel. where’s da logic?

            Like or Dislike: Thumb up 46 Thumb down 10
          • Get real. MY oil is jet fuel grade. Using it in ur kapcai is a waste non-replenishing resource.

            Like or Dislike: Thumb up 40 Thumb down 12
          • Sinjiapork SMRT on Sep 09, 2017 at 6:56 pm

            Wow SG cars use jet fuel grade. Lucky them

            Like or Dislike: Thumb up 3 Thumb down 0
          • Min Wei on Sep 10, 2017 at 8:23 am

            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

            Like or Dislike: Thumb up 4 Thumb down 0
          • Well, now is the gud time to ask the geriatric leader what happened the past 22 years aint it?

            Like or Dislike: Thumb up 0 Thumb down 1
        • Kunta Kinte on Sep 08, 2017 at 11:07 pm

          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.

          Well-loved. Like or Dislike: Thumb up 241 Thumb down 12
          • Someone who reneges on a promise

            Like or Dislike: Thumb up 45 Thumb down 0
          • 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?

            Like or Dislike: Thumb up 133 Thumb down 95
      • Kunta Kinte on Sep 08, 2017 at 7:39 pm

        of course old cars and ron are interrelated.

        Like or Dislike: Thumb up 28 Thumb down 0
        • No they dun. A Saga3 can use RON100 with no problem just as well as a brand new Civic.

          Like or Dislike: Thumb up 47 Thumb down 45
          • Ahh, typo error. Not Saga3 but Saga1 (aka The Tank).

            Like or Dislike: Thumb up 11 Thumb down 6
          • Saga3 can drink any ron, wont run more efficient & still spewing toxic Euro2 fumes

            Like or Dislike: Thumb up 18 Thumb down 0
          • Khalid on Sep 09, 2017 at 2:09 pm

            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

            Like or Dislike: Thumb up 4 Thumb down 2
          • liang on Sep 12, 2017 at 11:34 am

            How come? I have both cars too. My Saga consumes much lesser petrol than my Accord 2.0

            Like or Dislike: Thumb up 0 Thumb down 0
        • Redidiot on Sep 09, 2017 at 9:20 am

          No relationship between RON and sulphur content- can find RON 95 Euro 2 and Euro 5.

          Like or Dislike: Thumb up 3 Thumb down 0
    • maslan on Sep 08, 2017 at 4:52 pm

      So wasteful scrapping Euro4 cars, yet brand new P1 only have Euro2 Campro.

      Like or Dislike: Thumb up 34 Thumb down 17
      • Campro CFE & VVT is Euro5 compliant.

        Like or Dislike: Thumb up 85 Thumb down 83
        • winrar on Sep 08, 2017 at 6:32 pm

          P1 kena scrap kaw kaw..

          Sos : https://paultan.org/2014/09/25/proton-iriz-meets-euro-4-regulations-foreign-engines-considered-markets-euro-5/

          Like or Dislike: Thumb up 16 Thumb down 3
          • 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.

            Like or Dislike: Thumb up 0 Thumb down 0
        • Get Poisoned by Sulphuric Acid on Sep 08, 2017 at 6:50 pm

          Euro5 compliant engine is useless, since majority gas stations sell Euro2M petrol only.

          Like or Dislike: Thumb up 11 Thumb down 0
  • thepolygonal on Sep 08, 2017 at 4:34 pm

    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

    Like or Dislike: Thumb up 21 Thumb down 0
    • Abang Alza Pakai Topi on Sep 08, 2017 at 8:31 pm

      No need to suck up to our former master for for scrapping model. Just honour the 30% car price reduction already lah.

      Like or Dislike: Thumb up 14 Thumb down 1
      • No need cheaper cars when we r focus to enhance public transports. Save the environ for future generations.

        Like or Dislike: Thumb up 33 Thumb down 21
        • owaief on Sep 09, 2017 at 4:29 am

          No public transports from putrajaya to port dickson. Mau jalan kaki?

          Like or Dislike: Thumb up 34 Thumb down 17
          • Yes there is. ERL to KL Sentral then KTM Komuter to Port Dickson. itu pun mau saya ajar kah?

            Like or Dislike: Thumb up 35 Thumb down 14
          • Another way is take Nadi Putra bus/ Grabuber to Serdang KTM then Komuter to Port Dickson.

            Like or Dislike: Thumb up 8 Thumb down 1
        • you take KTM to Seremban. Then you tke Grabuber.

          Plan your journey well. Putrajaya and Cyberjaya are well connected

          Like or Dislike: Thumb up 10 Thumb down 9
          • Min Wei on Sep 10, 2017 at 8:18 am

            better use our cars to go about cause it uses “Jet Fuel” as you say. So our cars can fly wor

            Like or Dislike: Thumb up 3 Thumb down 1
  • 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…

    Like or Dislike: Thumb up 74 Thumb down 62
    • Otman on Sep 08, 2017 at 7:32 pm

      UK cars so cheap, scrap no problem.
      MY cars so exp, duties so high.

      Like or Dislike: Thumb up 27 Thumb down 22
      • 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.

        Like or Dislike: Thumb up 42 Thumb down 38
  • tokmoh. on Sep 08, 2017 at 4:47 pm

    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.

    Well-loved. Like or Dislike: Thumb up 52 Thumb down 0
    • Rather than incentivise to change cars, gov shud incentivise use public transports instead.

      Like or Dislike: Thumb up 81 Thumb down 59
      • Kunta Kinte on Sep 08, 2017 at 7:37 pm

        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

        Like or Dislike: Thumb up 42 Thumb down 11
        • 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?

          Like or Dislike: Thumb up 49 Thumb down 42
          • Sodom husin on Sep 08, 2017 at 11:24 pm

            grab Grabuber easier lah.

            Like or Dislike: Thumb up 3 Thumb down 0
          • Grabuber only last mile connection. Trains r the future.

            Like or Dislike: Thumb up 30 Thumb down 28
          • Ridh1 on Sep 09, 2017 at 4:32 am

            KL to Janda baik. Got train ka?

            Like or Dislike: Thumb up 17 Thumb down 0
          • 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

            Like or Dislike: Thumb up 2 Thumb down 11
          • @Ridh1
            Upcoming ECRL is for that purpose. Just have patience.

            Like or Dislike: Thumb up 1 Thumb down 0
          • Loler on Sep 11, 2017 at 3:10 am

            KL to janda baik? Ok later we would see basher ask train from KL even to gunung kinabalu. Lol

            Like or Dislike: Thumb up 0 Thumb down 0
      • tokmoh. on Sep 09, 2017 at 8:38 am

        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.

        Like or Dislike: Thumb up 6 Thumb down 0
        • 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.

          Like or Dislike: Thumb up 11 Thumb down 7
          • Economy 101 on Sep 11, 2017 at 3:16 am

            Tokmoh is still dreaming . Discount ended ady, if they dun raise the price after discount then it is not called discount at first place

            Like or Dislike: Thumb up 0 Thumb down 0
          • TnG diskaun still applies. So as children, snr citizens, students, OKU cards diskaun as well

            Like or Dislike: Thumb up 0 Thumb down 0
    • 4G63T DSM on Sep 08, 2017 at 5:33 pm

      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.

      Like or Dislike: Thumb up 16 Thumb down 2
      • Tahar on Sep 09, 2017 at 3:53 am

        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

        Like or Dislike: Thumb up 8 Thumb down 1
        • alldisc on Sep 11, 2017 at 10:34 am

          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.

          Like or Dislike: Thumb up 0 Thumb down 0
      • tokmoh. on Sep 09, 2017 at 9:20 am

        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.

        Like or Dislike: Thumb up 0 Thumb down 0
  • panjang on Sep 08, 2017 at 4:47 pm

    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.

    Like or Dislike: Thumb up 17 Thumb down 2
  • JessieCCY on Sep 08, 2017 at 4:47 pm

    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

    Like or Dislike: Thumb up 8 Thumb down 0
  • sick&tired on Sep 08, 2017 at 6:36 pm

    This will not work in Malaysia because the price of cars here are ridiculously high!!!!

    Like or Dislike: Thumb up 11 Thumb down 2
  • Carigali on Sep 08, 2017 at 7:25 pm

    Sapot sapott scrap car.
    2020, MY developed high income nation!

    Like or Dislike: Thumb up 3 Thumb down 1
  • Will happen….in your dreams.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Frankor on Sep 08, 2017 at 8:03 pm

    The better way is to abolish all taxes currentlu imposed on both CKD and CBU vehicles then eventually nobody will drive old cars

    Like or Dislike: Thumb up 5 Thumb down 0
  • promez56 on Sep 08, 2017 at 11:15 pm

    First reduce the car prices which was promised 4 years ago and then talk about scraping car

    Like or Dislike: Thumb up 15 Thumb down 7
    • 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?

      Like or Dislike: Thumb up 42 Thumb down 39
      • KenJi on Sep 09, 2017 at 4:35 am

        Exora famili mpv orso reduced airbags. How to save future generations, no?

        Like or Dislike: Thumb up 13 Thumb down 3
        • 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.

          Like or Dislike: Thumb up 34 Thumb down 27
          • 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.

            Like or Dislike: Thumb up 34 Thumb down 23
          • ducatiscrambler on Sep 09, 2017 at 2:25 pm

            Great idea indeed. Can free up federal highway for bikers..hehe

            Like or Dislike: Thumb up 3 Thumb down 0
        • Thats P1 decision cuz pipu wants it. Not gov decision. So apa kena mengena?

          Like or Dislike: Thumb up 35 Thumb down 29
    • Henry on Sep 09, 2017 at 7:00 pm

      Then there will be gridlock on every road and highway.

      Like or Dislike: Thumb up 1 Thumb down 0
  • 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?

    Like or Dislike: Thumb up 0 Thumb down 0
  • andrekua on Sep 09, 2017 at 1:56 pm

    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.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Bernard on Sep 09, 2017 at 2:46 pm

    Don’t compare Bolehland with the countries mentioned. We are light years behind….

    Like or Dislike: Thumb up 3 Thumb down 0
  • Henry on Sep 09, 2017 at 7:06 pm

    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.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Min Wei on Sep 10, 2017 at 8:11 am

    How can MY oil be jet grade? You mean all of us who fill up with Petronas is Jet Grade?

    Ha ha ha ha

    Like or Dislike: Thumb up 0 Thumb down 0
    • U have no idea the superior quality of MY crude oil. Pls study b4 come here tokok.

      Like or Dislike: Thumb up 2 Thumb down 0
 

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