Eight out of 10 dealers want scrappage scheme to support EV sales

News

Majority of retailers support ‘dramatic’ incentive move as they back government intervention to encourage electrification

MA

Matt Allan

10 September 2026 · 2 min read

More than 80% of UK used car dealers believe that the country needs a scrappage scheme to help stimulate the new EV market.

In a monthly poll by Startline Car Finance, secondhand retailers were asked for their views on government intervention in the car market, with 60% saying they believed it was necessary.

A huge 83% backed the suggestion of a scrappage scheme, similar to that run in 2009. That scheme aimed to remove older, more polluting cars from the road and offered drivers £2,000 towards a brand-new car if they traded in a vehicle more than 10 years old for it to be scrapped.

The programme cost the UK Government £300 million and saw almost 400,000 older models replaced with new cars in the space of a year.

Dealers believe that a similar programme now could drive more demand in the new EV market as manufacturers work to hit their ZEV Mandate targets. Just over 20% also agreed that there are currently too many older and polluting cars on the roads.

Startline CEO Paul Burgess said a scrappage scheme would be a more visible incentive than the current Electric Car Grant. He commented: “The electric new car market is already supported by the government with dual level subsidies, but dealers clearly feel that a scrappage scheme would have a wider impact.

“It’s easy to see the advantages. The current scheme reduces the price of a new electric car but it is effectively invisible – consumers don’t see the discount. A scrappage scheme has a much higher profile. It’s more dramatic.

“With a new government in place, this could be the moment for a change of approach.”

Among those questioned, 10% argued it was more environmentally friendly to keep existing cars on the road, 8% pointed out that electric cars have already become more affordable and 6% were against any government intervention in the market.

Transport for London ran its own scrappage scheme from 2023 to 2025 to help Londoners switch to ULEZ-compliant cars. Around the same time several individual car brands, including Renault, Volkswagen, Tesla and Kia ran similar offers but there are currently no car scrappage schemes operating in the UK.