Poor performance isn’t the only problem with your older van. It also harms the environment through increased Co2 emission.

London tackles this issue by offering drivers a scrappage scheme that lets them dispose of their vehicles for cash. The plan is part of the new European emission standards, but what exactly does it involve?

This article will explain the London van scrappage scheme.

What Is the Vehicle Scrappage Scheme in London?

The van scrappage plan enables you to trade in your pre-Euro 6 diesel vehicle for an improved Euro 6-compliant model. In addition to upgrading to a more efficient four-wheeler, you also receive a large amount of cash for the trade. The scheme has helped numerous businesses ditch their older van for a cleaner alternative. Millions have been invested, resulting in more eco-friendly vehicles in London.

The scrappage scheme has been implemented many times. In most cases, it’s been extended to small businesses that operate within the capital’s ULEZ boundaries (Ultra Low Emission Zone).

Where Is Low the Emission Zone in London?

The low emission zone was introduced quite recently, and many people still wonder: where is the low emission zone in London? It’s a vast area that covers all regions within the South and North Circular Roads. The A406 and A205 are the only two exemptions.

How Much Is Low Emission Zone in London?

Another question Londoners ask when researching the scrappage scheme is how much is a low emission zone? Specific vehicles are allowed to enter this part of the city, so how much are you charged if your van doesn’t make the grade?

Any vehicle running within the ULEZ boundaries that doesn’t adhere to Euro 6 or Euro 4 European emission standards is subject to a £12.50 fee. The daily charge applies 24/7. What is more, the penalty is levied alongside the Congestion Charge, which deters motorists from driving unnecessarily in central parts of the capital. Both fees share the same goal – reducing pollution.

Who Qualifies for the Vehicle Scrappage Scheme?

Initially, only a limited number of companies qualified for the program. Only businesses with up to 10 employees were eligible. Nowadays, you can apply for the plan even if you have 50 staff in your company.

If you’re eligible, you’ll need to prove you have a valid London address. Furthermore, you must meet the following criteria:

Your organization mustn’t have more than 50 employees.

Your turnover mustn’t exceed £632,000.

The balance sheet amount in the current and previous financial years must be £316,000 or lower.

Your business must obtain VAT registration. Another option is to register with the Companies House.

The cash received for the trade varies. But generally, you can get a reduction of up to £6,000-£7,000 from your new low-emission van when handing over the old vehicle. Note that the number of claims per company is limited to three.

What Vehicles Qualify for the London Van Scrappage Scheme?

If you want to scrap your older van through the scrappage scheme, the vehicle must meet these conditions:

Your minibus or van must be owned by your registered charity or business. There may also be a minimum period of ownership (e.g., one or two years).

The minibus or van must have business insurance.

Your vehicle must have an MOT (Ministry of Transport) certificate and be taxed for road use.

Your vehicle can’t abide by the ULEZ standards.

Once your van is scrapped, you should be able to claim the cash, but the vehicle needs to meet several other conditions. Primarily, the scrapping must be performed by a certified treatment facility familiar with the European emission standards.

What Funding Does the Scrappage Plan Offer?

The scrappage scheme is successful due to various incentives. If you dispose of your old vehicle through the plan, you can select a few different alternatives. The most popular option is to receive a £6,000-£7,000 payment toward the costs of your new electric model. This is a great way to transition to your cleaner replacement and drive within the ULEZ boundaries for free.

Another option is to receive £3,000-£3,500 to switch to a cleaner alternative, but there’s a caveat. If you pick this alternative, you’ll need to invest in a non-electric vehicle, hence the lower incentive.

If you have a business in Greater London, scrapping your non-compliant van and replacing it with an electric alternative qualifies you for a £2,500 grant. Best of all, you also get your £6,000-£7,000 payment on top of that. This gives you a whopping £8.5-£9.5K to finance your new vehicle more easily.

How Do I Apply for My Van Scrappage Plan?

If your commercial vehicle is eligible for the scheme, applying for the scrappage shouldn’t be a problem. All you need to do is go to the application page. Fill in the details and wait for the Transport for London office to process your request.

When choosing the treatment facility, the scrapping permit isn’t the only thing you should look for. You also need a company that provides a valid Driver and Vehicle Licencing Agency (DVLA) Certificate of Destruction. It proves your older van has been removed from London roads.

Make sure to remind your provider that you need this certificate. Without it, recycling centres may deem the van roadworthy and return it to roads after transferring your ownership. Consequently, your vehicle wouldn’t qualify for the funds.

The easiest way to find trustworthy companies is to perform an internet search. Check the reviews of customers who’ve already completed the scrappage program. If there are any clients who haven’t obtained the Certificate of Destruction, it’s a telltale sign of the company’s lack of transparency. They may have failed to notify the motorist they don’t issue the certificate. Knowing this beforehand saves you a lot of hassle.

After your older van has been scrapped, you’ll need to provide your DVLA Certificate to the relevant Transport for London Office. This completes the application. From here, wait for the authorities to approve and transfer your funds.

The Best of Both Worlds

You can gain a lot from the London van scrappage scheme. Apart from the extra cash, there’s also the gratification of knowing you’ve helped the environment. Just be sure to find the right treatment provider. They’ll help you breeze through the process and switch to an eco-friendly vehicle faster.