The government's scrappage subsidy scheme begins today - but risks being overshadowed by a series of disputes with the car manufacturers it is meant to help.
Under the scheme owners of cars and light vans registered before 31 August 1999, who have owned the car for at least a year will be able to scrap the vehicle in exchange for £2000 towards the cost of a brand new car from a particpating manufacturer.
The vehicle scrapped must have a valid MOT when the new car is ordered and must have a registration address in the UK. Full details of the conditions of the scheme are available by clicking on 'Car makers sign for scrappage'.
However, the manufacturers involved have become embroiled in disputes with the Department for Business, Enterprise and Regulatory Reform, which is administering the scheme.
There have been suggestions that manufacturers have cancelled special offers and raised prices in preparation for the scheme, in order to absorb some of the £1000 contribution they must make as part of the £2000 discount. The other half is provided by the government.
The motor manufacturers and dealers also claim that the exact details of how the system will work have not yet been finalised. As a result, Ford and Honda have already confirmed they will not be able to take registrations under the scheme immediately. You can read more on this by clicking on 'Ford and Honda delay scrappage'.
The government has asked the manufacturers to put in the £1000 for each car, but in the past incentives have been split with dealerships. Some car makers warn that on cheap cars their profit would disappear if they have to fund the full £1000, rather than splitting it with the dealership.