Tesla has introduced a scrappage policy in the UK to make its Model 3 and Model Y more attractive to buyers. Old gas or diesel cars valued at £2,000 ($2,500 US dollars) or less, might qualify for an additional £2,000 credit, via a trade-in.
For instance, if the trade-in value of the gas or diesel car is £1,500 ($1,900), buyers will receive £1,500 and another £2,000 for a total of £3,500 of credit. To qualify for the scheme, buyers must get their trade-in quotes officially confirmed between June 1-30, 2023. Additionally, the car should be registered in their name for at least 3 months. The vehicle must also carry a minimum of 30 days of MoT (Ministry of transport safety eligibility).
If owners qualify for the scheme, their new Model 3 or Model Y can cost them £4,000 ($5,000) less than its MSRP. Some prospective buyers might consider this a welcome move as the UK government canceled its plug-in car grant last year, 11 years after its introduction in 2011. The government cited “success in the UK’s electric car revolution,” as the reason to end the grant.
Here’s what Tesla said in a statement:
In support of our mission to accelerate the world’s transition to sustainable energy, Tesla is removing petrol and diesel cars from UK roads as part of our trade-in process.
Tesla’s new policy hasn’t pleased everyone. Old relics have been scrapped due to previous scrappage policies, David Simister, the editor of Classic Car Weekly told Car magazine. Their environmental impact is relatively low and can easily be offset using carbon balancing schemes, he added. Moreover, Tesla’s trade-in value could be lower than what buyers can obtain, as per Electrifying.
The scrappage policy is one of the many new business expansion initiatives Tesla has undertaken across the globe. The brand’s price war grabbed headlines and compelled legacy carmakers to catch up. Tesla slashed the price of its models in the US multiple times in the past year, including thrice in 2023.
Do you think a similar scrappage policy can work in the US? Leave your thoughts in the comments.