Government Scrappage Scheme starts.

From today consumers can drive off with a £2,000 discount on a new car, under the government's scheme to scrap their old banger for a new model.

"Thirty-eight companies have signed up - all the major UK car manufacturers and a number of other companies"

Peter Mandelson

The £300m scrappage scheme, announced in last month's Budget, is intended to boost consumer confidence and kick-start demand for new cars.

Motorists will be spoilt for choice with 38 manufacturers taking part in the scheme covering all the major brands.

The manufacturers who have signed up to take part are: Allied Vehicles, Bentley, BMW, Chevrolet, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Rolls Royce, SAAB, SECMA UK, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo, Koelliker UK Ltd, Iveco Ltd, Chrysler, Renault Trucks UK Ltd.

The £2,000 grant is made up of £1,000 from government with matched funding from vehicle manufacturers. The scheme will operate until March 2010 or until the government funding has been exhausted