REMEMBER “CASH FOR CLUNKERS,” the quasi-green, federal government–backed stimulus of new-car sales in 2009? Well, the idea is back with a twist in Great Britain: scrappage programs sponsored by carmakers themselves. When Vauxhall announced the first privately run scrappage scheme in 2015, few noticed, but the company reintroduced the plan in May last year and set off a flood of copycats. Within months, the U.K. arms of BMW, Fiat Chrysler, Groupe PSA, Mazda, Mercedes-Benz, Renault-Nissan-Mitsubishi, Toyota, and the VW Group all announced programs of their own.
There are variations—the German brands will accept only diesels, for example—but most plans work similarly: Vehicles from any automaker and of a particular age are eligible and earn buyers a discount, usually £2000–£8000 (about $2750–$11,000), on a new model. The trade-ins then head to…