Toyota has announced discounts of up to £4000 on a range of new cars - including hybrids - under its new "scrappage" scheme.
The automaker launched a similar program in Germany following an industry summit with government officials in August.
It is an important move for Volkswagen especially, which has suffered since 2015's "Dieselgate", a scandal in which millions of VW vehicles were proven to have cheated emissions tests. Manufacturers have already launched scrappage schemes overseas, with VW offering substantially more, a €10,000 incentive, to German vehicle owners.
So, for example, an e-Golf, which gets a £4,500 grant from the government, will also have VW trade-in saving of £5,500, adding up to £10,000 off in total.
Electric and hybrid vehicles, which attract government grants, will be included in the scheme.
The company said today it will offer drivers as much as £7,000 to trade in diesel cars made before 2010, in an effort to encourage drivers to ditch their polluting vehicles in favour of newer, cleaner models.
"We've seen a bit of a drop in the United Kingdom vehicle market this year after years of really accelerated growth".
How to donate to Hurricane Harvey victims (and avoid a scam)
Disaster relief efforts in the region align with Boeing´s ongoing commitment to the communities where the company has a presence. Rain continues to fall, thousands of people have already been forced to abandon their homes, leaving everything they own behind.
First human West Nile Virus case confirmed in Stanislaus County
Fix or replace screens that have tears or holes to prevent mosquitoes from entering the home. And severe symptoms of the illness can lead to encephalitis or meningitis or even death.
USA fast food giant launches its own cryptocurrency in Russian Federation
According to The Business Insider , the United States fast-food chain is also giving free burgers to people who have been fired. Customers will be able to claim their coins simply by scanning their receipt using the Burger King apps on their smartphones.
Scrapping an old vehicle and buying a new SEAT Ibiza would involve a €1,500 grant; with €2,750 against a new Octavia.
However, he said it would also be important to VW that its United Kingdom competitors have similar schemes running, and VW will probably have pitched their discounts at that level in order to compete.
Karen Hilton, head of sales and operations at carwow commented: "Allowing consumers to part with with older more polluting vehicles, whilst supporting them with the cost of trading up has always been suggested as a sensible, and ultimately unavoidable approach, and whilst some schemes go further than others, this is a very positive move for United Kingdom drivers". Vehicles part-exchanged under this scheme will be permanently destroyed.
The move comes after a similar offer by Toyota, which offered United Kingdom customers as much as £4,000 to trade in their polluting cars for new ones.
"Sales have been robust in the wake of the dieselgate scandal, and it's worth remembering that no cars on sale today were affected by that issue, and that the VW Group is still the largest spender on R&D in the auto industry, leading to its impressively strong line-up of cars", he said.
Meanwhile, Renault's programme allows customers to benefit from an allowance of between £3,000 and £7,000, including scrappage support, towards the purchase of a new auto or van.
New auto registrations fell for the fourth month in a row in July, the longest run of declines since 2011, as demand cools due to faltering consumer confidence ahead of Brexit and uncertainty over whether the government will impose new penalties on drivers of the most-polluting vehicles.