The Car scrappage scheme is popular

A survey suggests that 250 million people in the UK would like to take advantage of the scheme and it offer drivers incentives to trade in old cars in for newer ones.

The scheme, which has been introduced as part of a budget, is also designed to help the car manufacturing industry, which has been badly hit by the recession.

Motorists actively want to be able purchase new cars but are financially restricted as everyone tightens their purse strings during the downturn. Similar schemes are currently operating successfully in Germany. Earlier this month the government announced that it will be offering incentives to people who buy electric cars from 2011.