Tesla launches scrappage scheme offering an extra £2k 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 deal
- Tesla scheme only available in June for those scrapping a petrol or diesel car
- It offers an additional £2k on top of the trade-in value against a new Model 3 or Y
- However, there's one stipulation that makes it less appealing than it sounds
Tesla, fresh from a number of price cuts and cancellations of UK orders for its electric vehicles, has this month launched a controversial 'scrappage' scheme deal for customers.
Available only in June, the offer is open to those wanting to ditch an older petrol or diesel car.
By doing so, buyers will be offered an additional £2,000 off the price of a new Model 3 or Model Y.
However, there's one very huge catch that makes this deal less enticing than it sounds...
Tesla scrappage scheme launched for June, but there a BIG catch that makes it a bum deal
Drivers willing to scrap a petrol or diesel car will get an extra £2,000 on top of the old vehicle's trade-in value to put towards the price of a new Tesla Model 3 (pictured) or Model Y
Tesla has been hitting headlines in recent months for all the wrong reasons in the eyes of British customers.
With electric car demand slipping, the value of second-hand Teslas have taken a monumental nosedive since the end of last year, depreciating quicker than any other marque.
READ MORE: A desperate bid to kick-start electric car sales: One brand has just slashed its EV prices
In an effort to drum-up sales, the US EV maker decided to kick off 2023 by announcing substantial price reductions across its Model 3 and Y range, much to the fury of buyers who had placed orders at the higher price just days before.
A number of subsequent cuts have followed, so many that we've now lost count.
Then last month, more UK customers were left disappointed by news that the brand has cancelled all order for right-hand drive Model S and Model X as it focusses on production of vehicles with the steering wheel on the left.
Those who had already paid deposits on cars - some of them placed over two years ago - were told on 12 May that their orders can no longer be completed.
Instead, they have been given the option of taking a left-hand-drive Model S or X, a £2,000 contribution towards switching to a smaller Model 3 or Model Y, or cancelling their order entirely and receiving a full refund on their deposit.
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The major issuer with the scrappage scheme is that it is only available to those trading in an older petrol and diesel car with a value of less than £2,000
Experts have pointed out that very few owners of sub-£2,000 bangers are going to be able to make the jump to an expensive electric car. The Tesla Model Y (pictured) starts from £44,990
Tesla's scrappage scheme isn't what it seems
Now there's a new deal on the table to potential Tesla customers for this month only.
In a statement issued on Thursday, Tesla said: 'In support of our mission to accelerate the world’s transition to sustainable energy, Tesla are removing petrol and diesel cars from UK roads as part of our trade-in process.'
But this isn't a deal that's likely to drum-up a surge in EV sales for the US maker.
Sadiq Khan extends ULEZ scrappage scheme
On the same day Tesla announced its own scrappage scheme, London Mayor Sadiq Khan confirmed has has expanded the Ultra Low Emission Zone (ULEZ) scrappage scheme to cover families receiving child benefits and small businesses across the capital from the end of July.
Business with fewer than 50 employees can now apply to scrap, retrofit or replace vehicles, not just those with up to 10 staff.
The move also means 874,710 London families receiving child benefits can apply for a new vehicle.
London charities can scrap or retrofit up to three vans or minibuses, instead of one, under the new rules announced Thursday.
That's because the scrappage scheme is only available to those trading in an older petrol and diesel car with a value below £2,000.
It means owners of low-value combustion cars will get a combined total of their trade-in vehicle's price and an additional £2,000 to put towards a new Model 3 or Y.
For instance, a car valued at £1,500 would see a customer offered £1,500 trade-in and an extra £2,000 if they are happy for it to be scrapped. This would theoretically knock 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 sub-£2k banger is going to be able to afford a car with such a premium price tag.
That said, the US brand is currently listing unregistered Model 3s at £40,190.
An extra £2,000 would bring the price down to £38,190, which is around the same as a range-topping Fiat 500 Electric.
There's quite a few eligibility tick boxes with the Tesla deal, too.
The brand determines the trade-in value of the car to be scrapped - and only quotes given between June 1 and 30 are valid.
The trade-in car also must have been in the registered keeper's name for at least three months and have a minimum of 30 days remaining on an MOT certificate. Former taxis and crash damaged vehicles also fail to qualify for the brand's scheme.
'Not many people with a banger can make the leap to a £50k car'
Electrifying.com editor in chief, Tom Barnard, says that while the scrappage scheme might sound like a decent offer, there isn't going to be many - if any - drivers who are able to 'make the leap from a banger to a £50,000 car'.
And he points to further issues with the scheme that customers need to be aware of.
'It might be good deal for someone whose car is approaching an MOT and is going to inevitably head for scrap, but the trade in prices offered by Tesla seem to be 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 in a private sale.'
Mr Barnard also questioned the environmental impact of scrapping cars which potentially still have plenty of life left in them.
'While getting rid of petrol and diesel vehicles obviously has a benefit for air quality, there will be plenty of drivers who feel it is wasteful to ‘throw away’ a car which could provide economical transport for several years,' he said.
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