The scrappage scheme's removal of up to 400,000 old cars from the roads will lead to an uncertain future for some independent garages, claims a parts supplier.
Car Parts Direct has surveyed 100 garages and found a quarter were uncertain whether they would be able to survive the next two years as a result of the scrappage scheme.
Mark Cornwall, spokesman, said many of the scrapped cars were in perfectly good condition and would have provided service and repair business for independents.
He added: “Mandelson has encouraged naive and unsuspecting motorists to join the Government in their credit binge. His hair brain scheme has resulted in some perfectly good vehicles been destroyed."
Cornwall added “The cost of buying a new car compared to running an older vehicle does not stack up. Anyone with a ten year old vehicle who looks after it will enjoy several years of trouble free motoring at a fraction of the cost of buying new.”