The idea is to help boost sales, which were 4.4% down in September, with the total volume of 328,041 the lowest new car registration figure since 1999.
The emphasis could be on helping UK-based manufacturers such as Honda, Jaguar, Land Rover, Nissan, Toyota and Vauxhall. However, a scheme focused on electric and plug-in hybrid cars is unlikely, because the supply of these cars is restricted by manufacturing limitations.
Despite this, some car makers are already offering their own scrappage discounts to encourage motorists to trade older cars in for new, more efficient models, details of which are below.
To qualify for the schemes, the car you’re trading in must comply with Euro 1-4 emissions standards, which generally means it will have been first registered before 31 December 2009, although some schemes have been extended to cover newer cars too.
Euro standards set the emissions limits for new cars; the first, Euro 1, was introduced in 1992. You can check the Euro emissions standard of your car here.
Click on to the following slide to find out what the city of London is offering…