Car and Van Discount Scheme Industry Seminar: 27 April 2009

Key Features Consumers offered £2k towards new car or van if they trade in 10 yr old+ vehicle which they have owned for 12 months Incentive = £1k HMG/£1k industry £300m funding = up to 300,000 sales Launch mid-May Finish 28 Feb 2010 or until funding used up

Key Features Price transparency for consumers, dealers, manufacturers & auditors Voluntary scheme for manufacturers & dealers Applies to all manufacturers’ models No limit to number of vehicles purchased per individual/business

Key Features Only one discount per vehicle No restriction on period of new car ownership No restriction between scrapping car & purchasing van or vice versa Fleet/motability customers eligible

Eligibility – old vehicle Car or Light Commercial Vehicle not exceeding 3.5 tonnes. (N1 class) First registered in UK on or before 31 August 1999 Claimant keeper must have been registered keeper for at least 12 months before new vehicle order date

Eligibility – old vehicle Registered keeper must have UK address Current MOT test certificate Vehicle clear of finance

Ineligibility – old vehicle Not dealers trading in vehicles in their own name Not stolen vehicles Not insurance write-offs

Eligibility – new vehicle New car or Light Commercial Vehicle not exceeding 3.5 tonnes UK specification vehicle First registered in UK on or after date of scrappage scheme launch and declared new at first registration in UK with no former keepers Registered to same keeper as registered keeper of vehicle to be scrapped

Ineligibility – new vehicle Not used cars Not demonstrators Not parallel/grey imports Not order placed before scheme starts Not retailer customers

How the process works: Consumer No need for consumer to formally register or apply to the scheme (not a voucher scheme) Consumer can check in advance that old vehicle and keeper details meet eligibility criteria. Dealers can provide further advice Dealers to do the paperwork and arrange for old vehicle to be scrapped £2k scrappage discount to appear on customer sales invoice

How the process works: Consumer Consumer provides proof of identity, V5C for trade-in vehicle & MOT certificate Consumer gives agreement to old vehicle being scrapped Consumer agrees to collection and use of personal data for vehicle discount scheme Consumer agrees to being contacted by BERR for monitoring purposes

How the process works: Dealer Dealer checks old vehicle eligibility and customer identity details Notifies manufacturer when order placed under scrappage scheme & proposed trade-in vehicle details Following delivery of new vehicle, arranges destruction of old vehicle through ATF and retains copy of CoD Dealer notifies manufacturer that transaction is completed

How the process works: Dealer Ensures that £2k scrappage discount appears on customer’s sales invoice Retains records for audit purposes - V5 of trade-in vehicle -Copy of CoD -Current MOT -Invoice showing discount

How the process works: Manufacturer Key role in scheme administration Educate dealer network Promotes scheme through own advertising Ensures timely supply of vehicles Manufacturer submits weekly return to BERR listing orders under scrappage scheme from dealers and proposed delivery dates

How the process works: Manufacturer Following completion of transaction, manufacturer submits payment claim to BERR (on bi-monthly basis) Following payment by BERR, manufacturer reimburses dealer within 10 working days Manufacturers to notify BERR of orders on daily basis when they receive notice that scheme funding is running down

How the process works: BERR On receipt of order notifications from manufacturers BERR - updates payment forecasts - checks CoDs On receipt of payment claim, BERR checks details against returns already logged BERR checks keeper, CoD, & MOT details on DVLA database

How the process works: BERR BERR issues payment to manufacturers within 10 working days of claim submitted and updates expenditure forecasts BERR will notify manufacturers when funding is running down and cut-off point Independent audit – after 2 months and at the end of scheme Carries out scheme monitoring

Claim process Standard claim form & spreadsheet giving details of - consumer - dealer - old vehicle details - new vehicle details - CoD & ATF - MOT date Claim form signed by Finance Director

How the process works: ATFs collect vehicle from dealer or consumer submit CoD electronically to DVLA provide copy of CoD to dealer

How the process works: DVLA DVLA to check CoDs, registered keeper & MOT on database Service Level Agreement with BERR

DealerManufacturerBERR Dealer checks vehicle eligibility customer identity details Order placed with manufacturer Old vehicle details forwarded to manufacturer Manufacturer submits weekly return to BERR listing orders, proposed delivery dates & old vehicle details Updates payment forecasts & check old vehicle details with DVLA New vehicle delivered & old car handed in Old car sent to Authorised Treatment Facility & Certificate of Destruction issued to DVLA & dealer Dealer notifies manufacturer that transaction complete Manufacturer submits bi-monthly invoice to BERR BERR checks details against returns already logged. BERR checks Certificate of Destruction on DVLA database BERR pays manufacturer Dealer reimbursed by manufacturerPayment to dealerExpenditure forecasts updated Audit/checking and data monitoring

Next steps BERR to issue grant offer letter to manufacturers containing terms and conditions