Motorists can get a flat payment of €500 for scrapping their banger and replacing it with a clean new car.

The third instalment of a car scrappage scheme out today targets cars that are older than 10 years.

Announcing details of the scheme, Finance Minister Edward Scicluna acknowledged the cap was not as attractive as previous schemes and targeted those vehicles that had reached the end of their life.

He explained the scheme should be attractive for owners of battered cars, who would otherwise get practically nothing if they sold it. The scheme was based on plans announced in the Budget.

Contrary to the previous two schemes, which offered up to €2,000 for owners who scrapped their old cars and bought new ones, the new scheme offers a flat rate of €500 for those who buy new cars with an engine rating of Euro V or higher.

The new scheme also applies to commercial vehicles and motorists can only benefit once. Those who benefited from previous schemes cannot use the latest one.

The previous two car scrappage schemes had taken more than 5,000 old cars off the road in two years.

However, Prof. Scicluna noted that last year the average age of the car fleet increased slightly when compared to the previous year.

“It pays to lower the average age of our fleet because it contributes to cleaner air and reduces fuel consumption,” he said.

The latest scheme will close in December or earlier if the budget allocation is taken up.

ksansone@timesofmalta.com