The extension for the Scrappage Scheme goes live today, after the funds for the original scheme ran out.
From today, the new terms of the Government's scrappage scheme come into force meaning that even more vehicles will be eligible under the scheme.
In September it was announced that an extra £100 million would be poured into the Government's scrappage scheme bringing the total budget to £400 million to cover the purchase of 400,000 vehicles in total.
Van owners looking to trade in their vehicles will now be able to scrap their 8-year-old van instead of the previous 10-year requirement.
The age qualification for car owners now extends the benefits to cars registered on or before 29 Feb 2000 (V registration).
The Government said it had 'listened to the industry', in choosing to extend the scheme and expand the qualifying criteria.
Business Secretary Lord Mandelson said: "Consumers and businesses looking for a new vehicle should make the most of the scrappage scheme now. With the new terms, the Government's scrappage schememakes it accessible to even more consumers, but it has to end when the funding runs out.
Industry figures show that the scrappage scheme is continuing to boost the market. The automotive sector is a cornerstone of British manufacturing. That is why the Government plans to extend this successful scheme with an extra £100 million of funding."
The Society of Motor Manufacturers and Traders (SMMT) has said that the Scrappage Scheme has proven its green credentials, after the trade body revealed that over 70 per cent of all new cars sold through the scheme were small, more fuel efficient models. The Scheme is also credited with successfully propping up car sales during the recession. During September alone, the Scrappage Scheme was responsible for one in five of all new cars registered in the UK.
The scheme now run until February 2010 or when the funding runs out, whichever is sooner.