Tesla scrappage scheme – there’s a BIG catch that makes it a bum deal

Tesla launches scrapping scheme offering an extra £2,000 off a Model 3 or Y when trading in a petrol or diesel car – but there’s a BIG catch that makes it a bum

  • Tesla scheme only available in June for those scrapping a petrol or diesel car
  • It offers an extra £2k on top of the trade-in value against a new Model 3 or Y
  • However, there is one stipulation that makes it less attractive than it sounds

Tesla, fresh off a number of price cuts and UK order cancellations for its electric vehicles, launched a controversial ‘scrapping scheme’ for customers this month.

The offer is only available in June and is open to those looking to ditch an older petrol or diesel car.

By doing so, buyers get an additional £2,000 off the price of a new Model 3 or Model Y.

However, there is one very big catch that makes this deal less attractive than it sounds…

Tesla scrapping scheme launched for June, but there’s a BIG catch that makes it a bum

Drivers willing to scrap a petrol or diesel car are given an extra £2,000 on top of the trade-in value of the old vehicle to spend towards the price of a new Tesla Model 3 (pictured) or Model Y

Tesla has been making headlines in the eyes of UK customers for all the wrong reasons in recent months.

With demand for EVs declining, the value of used Teslas has taken a massive nosedive since late last year, declining in value faster than any other brand.

In a bid to boost sales, the US EV maker decided to kick off 2023 by announcing significant price cuts for its Model 3 and Y range, much to the anger of buyers who placed orders at the higher price just days before. posted price.

Several more cuts followed, so many that we have now lost count.

Last month, more UK customers were disappointed by news that the brand has canceled all orders for right-hand drive Model S and Model X as it focuses on producing left-hand drive vehicles.

Those who had already made down payments on cars – some placed more than two years ago – were told on May 12 that their orders can no longer be fulfilled.

Instead, they have been given the option of taking a left-hand drive Model S or X, paying a £2,000 contribution to switch to a smaller Model 3 or Model Y, or canceling their order entirely and receive a full refund of their deposit.

The main issue with the scrapping scheme is that it is only available to those who trade in an older petrol or diesel car worth less than £2,000

Experts have pointed out that very few owners of sub-£2,000 bangers will be able to make the jump to an expensive electric car. The Tesla Model Y (pictured) starts from £44,990

Tesla’s scrappage scheme is not what it seems

Now, a new deal is on the table for potential Tesla customers for this month only.

In a statement Thursday, Tesla said: “In support of our mission to accelerate the world’s transition to renewable energy, Tesla is removing petrol and diesel cars from UK roads as part of our trade-in process.”

But this isn’t a deal likely to lead to a surge in electric vehicle sales for the US manufacturer.

Sadiq Khan extends ULEZ scrapping scheme

On the same day that Tesla announced its own scrapping scheme, London Mayor Sadiq Khan confirmed that he has extended the Ultra Low Emission Zone (ULEZ) scrapping scheme to families receiving child benefits and small businesses across the capital from the end of July.

Companies with fewer than 50 employees can now apply for scrapping, retrofitting or replacing vehicles, not just companies with up to 10 employees.

The move also means that 874,710 London families receiving child benefit will be able to apply for a new vehicle.

London charities can demolish or retrofit up to three vans or minibuses, instead of one, under new rules announced on Thursday.

That’s because the scrappage scheme is only available to those who trade in an older petrol or diesel car worth less than £2,000.

It means owners of low-cost combustion cars get a combined total of the price of their trade-in car, plus an extra £2,000 to spend on a new Model 3 or Y.

For example, for a car valued at £1,500, a customer would be offered £1,500 trade-in and an additional £2,000 if they are happy to have the car scrapped. This would theoretically net a combined £3,500 off the price of a new Tesla.

However, given that the cheapest Tesla (the rear-wheel drive Model 3) starts at £42,990, it’s unlikely anyone who currently owns a car under £2k could afford a car with such a premium price tag.

That said, the US brand is currently offering unregistered Model 3s for £40,190.

An extra £2,000 would bring the price down to £38,190, which is about the same as a top-of-the-range Fiat 500 Electric.

There are also quite a few boxes to qualify for the Tesla deal.

The brand determines the trade-in value of the car to be scrapped – and only quotes issued between June 1 and June 30 are valid.

Also, the trade-in car must have been in the name of the registered holder for at least three months and still have at least 30 days on an MOT certificate. Former taxis and crash-damaged vehicles are also ineligible for the brand’s scheme.

‘Not many people with a bang can make the jump to a £50,000 car’

electrify.com editor-in-chief, Tom Barnard, says that while the scrapping scheme may sound like a decent offer, there won’t be many, if any, drivers who can ‘make the leap from a stunner to a £50,000 car’.

And he points to further issues with the scheme that customers should be aware of.

“It might be a good deal for someone whose car is approaching MOT and is inevitably going to the scrap yard, but the trade-in prices Tesla is offering seem on the low side,” he explains.

“The web value tool offered us £1,668 for a 2012 Fiat Panda with 33,000 miles, which Auto Trader suggested was worth £3,300 at a private sale.”

Mr Barnard also questioned the environmental impact of scrapping cars that still have some life left in them.

“While doing away with petrol and diesel cars obviously has an air quality benefit, there will be plenty of drivers who would think it a shame to ‘throw away’ a car that could provide years of economical transportation,” he said.

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