Save £ 2,000 on your next car: complete guide

We reveal how the scheme works and what cars are eligible.

What is it?

A scheme which allows new car buyers Adviser to trade in their current car, have it scrapped and receive £ 2,000 towards the cost of a new car or van.

The Society of Motor Manufacturers and Traders (SMMT) and Retail Motor Industry Federation (RMIF) proposed the scheme to the government, which has on February 18, 2009.

How does it work?

Any car over ten years old which meets the requirements is eligible for scrapping and the owner will receive £ 1,000 from the government and £ 1,000 from the manufacturer towards the cost of their new vehicle.

£ 1,400 to purchase a new car with Euro 4 as minimum engine specification-which has lower emissions

£ 900-£ 1,800 to purchase a new car which is less than 160 g/km or a van

£ 2,300 to purchase a car up to 12 months old with as minimum Euro 4 engine specification

£ 300-£ 700 to scrap a vehicle plus £ 1,400-£ 3.054 if purchasing a new vehicle

£ 1,400 to purchase a car with at least Euro 4 engine specification which emits less than 140 g/km for petrol and 130 g/km for diesel

£ 900-£ 1,100 for a car which emits less than 140 g/km

Over ten years old or a mileage of 155,000 miles

Up to a 0 per cent, £ 9,100 loan to purchase a new car or van. The car must cost less than £ 27,000 and emit less than 140 g/km. The van must emit less than 160g/km.

Up to £ 2,000 for a new car or van