Search: Car scrappage scheme
The Government's "cash for bangers" car-scrappage scheme has begun amid confusion with top-selling company Ford among some manufacturers delaying taking part.
A lack of clarity over VAT payments and the role of dealers in the initiative led some companies, including Ford and Honda, not to register any new vehicles under the scheme.
PM Gordon Brown and Business Secretary Lord Mandelson earlier hailed the scheme under which owners of cars and small vans more than 10 years old will get £2,000 off the price of a brand-new vehicle when scrapping their old motor.
But within hours it emerged that the initiative, introduced to boost new car sales which have slumped for 11 successive months, had run into a glitch.
Ford said it was working to resolve "administrative issues" while Honda said its dealers had been told not to register any cars until there was clarity on a number of outstanding issues.
AA president Edmund King said it was "ludicrous" that hitches had not been sorted out but the Business Department said it had been clear right from the start that the initiative was between the department and manufacturers and that it was up to manufacturers themselves to sort out any problems with dealers.
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The department also made it clear that VAT of 15% is added to the price of a new car before the £2,000 reduction - with half the money coming from the Government and the other half from manufacturers - is made.
Economic and Business Minister Ian Pearson said: "The scheme is launched and the public interest is strong. This is a one-off bargain for consumers in which the Government and the motor manufacturers are going 50-50 on the discount.
"The manufacturers have signed up to it and the overwhelming majority have begun implementing it today.
"A small number of companies should iron out any remaining wrinkles amongst themselves so that the car sector can receive the boost it needs."
