The government-funded scrappage scheme, which is due to end this month, has been worthwhile and has boosted green credentials, according to the Society of Motor Manufacturers and Traders (SMMT).

Since it began last May, the scheme has been responsible for contributing around 30 per cent of buoyancy to the motor market, accounting for 20 per cent of average sales, the SMMT’s media manager, Jonathan Visscher, said.

Once the initiative ends, the car market is predicted to perform about ten per cent lower.

A few critics have said that the scheme missed opportunities to provide direct green incentives to customers.

However, there are more environmentally-friendly cars on the roads because of the initiative as the new cars bought emit fewer emissions and have better fuel economy, Mr Visscher said.

More than £100 million has been spent in total by the government to fund the scheme.

It was implemented primarily to provide a short-term boost to the flagging new car sales market during the recession.

Some 400,000 cars have been traded in and scrapped through the government scheme.

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