Business Secretary Lord Mandelson today hailed the “cash for bangers” car-scrappage scheme as a “wonderful bargain” for motorists and good news for all those working in the car industry.

And Shropshire motor dealers have also welcomed the scheme, which they described as “win win” for everybody.

The Cabinet Minister said he hoped buyers would take advantage of the scheme that gets under way today, allowing owners to scrap cars and small vans more than 10 years old and get £2,000 off the price of a new vehicle.

Shropshire’s Nissan dealership today revealed it was able to offer an eight-year qualification for the scheme.

William A Lewis Nissan will be offering customers £2,000 off the purchase of a new British-built Nissan car when they replace their eight-year-old model.

Drivers of vehicles aged eight years or older can take home a Micra from £5,995 as part of the scheme.

Mervyn Hughes, principal of William A Lewis Nissan in Shropshire, said: “Nissan is the UK’s biggest car maker and the ‘buy British’ offer is not only supporting the British economy but the British worker.”

The Government and manufacturers are sharing the cost of the scheme, which will last until the end of next February or until the £300 million Government funding runs out.

Such schemes have worked well overseas, particularly in Germany where new car sales soared 40 per cent in March.

Although the UK scheme is voluntary, all the major manufacturers have signed up for it and many are planning to continue their own sales incentives on top of the scrappage deal.