News that scrappage has been extended and now includes eight-year-old vans has been welcomed by trade assocations.
SMMT chief executive Paul Everitt said the extension was a decision "that will inspire consumer and business confidence".
He added: "It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable.
“The additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year VED rates.”
At the RMIF, Paul Williams, chairman of the National Franchised Dealers Association, said the extension would safeguard many jobs in the retail and manufacturing sectors.
He described the extension as "a victory for common sense over dogma".
The rules on the trade-in vehicle have been amended to include cars registered before February 28, 2000, and vans registered before February 28, 2002.