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Car and Van Discount Scheme Industry Seminar: 27 April 2009

Car and Van Discount Scheme Industry Seminar: 27 April 2009

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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

Dealer Manufacturer BERR

Dealer checks vehicle eligibility customer identity details

Order placed with manufacturerOld 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 manufacturer

Payment to dealer Expenditure forecasts updated

Audit/checking and data monitoring

Next steps

• BERR to issue grant offer letter to manufacturers containing terms and conditions