The Government is extending its vehicle scrappage scheme, it was announced this afternoon.

Business Secretary Lord Mandelson, speaking at the Labour Party conference, said: "Today, I am extending our popular car scrappage scheme with extra money for an additional 100,000 cars and vans."

The initiative had been due to end in February, or when the 300m the government allocated towards the scheme runs out, whichever happens first (see the Car Buying guide).

Under the scheme, motorists receive a 2,000 discount to trade in cars older than 10 years for new models.

Critics suggest you're better off buying a second-hand car given vehicles typically lose value so quickly that the 2,000 saving is soon wiped out.

Further reading/Key links

Cheaper motors: Car Buying
Drive down fuel costs: Cheap Petrol & Diesel
Find cheap filling stations:
Mandelson's announcement: Full speech