The first question owners of older cars will ask is, of course, "how do I scrap my car?" In order to qualify for scrapping your old banger, it must be a passenger car or small van up to 3.5 tonnes in weight, registered in the UK before 1st August 1999, on record with the DVLA and, crucially, must have been with the current owner for more than one year. 

To scrap your car, you must also hold a valid MOT certificate for it - which the Government has insisted on working into the scrap scheme to prevent owners of forgotten, rusty heaps scrapping them for unfair profit. Furthermore, there's no limit on the CO2 rating of the car purchased in any deal, which is thought to be a move to help sales of big luxury cars - like UK-made Jaguars and Land Rovers, for example. Participating dealerships will handle the whole process from start to finish: filling out the paperwork and taking the old car from the customer to be scrapped, with no significant delays expected. 

The move means that, for example, average mileage ten-year-old superminis like the Citroen Saxo and Peugeot 106, which are currently worth only hundreds on the used market, will now be worth a cool £2,000 to their lucky owners. However, it also means than many perfectly good, serviceable motors will be scrapped in favour of a new car, which green campaigners will claim exacerbates the car's negative environmental impact as sales begin to rise.

That said, the Society of Motor Manufacturers and Traders (SMMT) has already voiced its approval of the scheme, with chief executive Paul Everitt saying: "This is good news for consumers and will get people back into showrooms, kick-starting demand in the market. The scheme recognises the economic value of the motor industry and we are determined to make it a success."