But what are the best scrappage deals? Dom Sacco takes a look at the top ten.

So far 41 manufacturers have promised to provide £1,000 per scrapped car, with the government paying the remaining £1,000.

Some are offering further discounts including £7,900 off a Citroen Xsara Picasso and £4,250 off a Volkswagen Passat.

View 30 of the most popular eligible cars:

Could you get £2,000 off a new car? Find out on Auto Trader's scrappage site

Top ten scrappage deals

10. Renault - new Clio Extreme 1.2 for £6,595 on the road after a £3,525 discount.

9. Suzuki - save £4,000 on a new Grand Vitara, with 0 per cent APR.

8. Mazda - £4,000 off a Mazda 5 1.8 TS.

7. Volkswagen - £4,250 off all new Passats.

6. Peugeot - £4,300 saving on a new Peugeot 207 Verve. Total price: £8,895.

5. Nissan - Micra Visia 1.2 from £6,395 with no minimum deposit. Nissan is also offering the £2,000 scrappage discount on eight-year-old cars.

4. Ford – save £5,000 on a new Ford Galaxy Edge.

3. Mitsubishi – standard scrappage saving for five-year-old cars.

2. Volvo – £6,841 off a new XC90 SUV

1. Citroen - £7,900 discount on a new Xsara Picasso 1.6i 110hp Desire.

Search for a new car on Auto Trader

Other car makers signed up to the scheme

• Allied Vehicles
• Audi
• Bentley
• BMW
• Chevrolet
• Chrysler
• Daihatsu
• FIAT
• Honda
• Hyundai
• Isuzu
• Iveco
• Jaguar
• Kia
• Land Rover
• London Taxis International
• Mercedes Benz
• MG Motor
• Perodua
• Porsche
• Proton
• Rolls Royce
• Saab
• Seat
• Secma UK
• Skoda
• Ssangyong
• Subaru
• Toyota
• Vauxhall

To be eligible for the scheme, old cars must be first registered on or before February 29, 2000 and vans have to be at least eight years old.

The scheme began on May 18, 2009 and will run until February 28, 2010 – or when 400,000 buyers have scrapped their cars.

For more information read our complete scrappage guide.

What do you think of the extension? Have your say on the Auto Trader Blog

Disclaimer: details correct at time of publishing.