Could car scrappage help you buy a new car?

Plans in the budget tomorrow will announce that owners of older cars are to be offered cash to trade up to 'greener' cars.

Chancellor Alistair Darling is hoping that the move will help the recovery of Britain's motor industry as well as cutting the country's greenhouse gas emissions.

Details are still being finalised, especially as 86% of cars sold in Britain are made abroad.

Still, the scheme might help you if you have an older cara and are looking for a new one. Grants of up to £5,000 could be offered to people buying electric cars in the future. Britain is one of the few major European countries still without a car scrappage scheme, and the UK Society of Motor Manufacturers and Traders has been calling for a scheme after the recession brought a slump in new car sales.