BBC Business News - Drivers with cars that are more than 10 years old can now scrap them in return for a £2,000 discount on a new model, as the car scrappage scheme begins.
Business Secretary Lord Mandelson said the £300m scheme would "provide a boost to the industry and kick-start sales".
But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars.
New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year.
Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal.
"There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's.
"An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car.
"They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped." Full story...
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