The Government today faced new calls to bring in a scheme under which motorists could be paid to trade in their old cars amid concerns that the 09 registration out today will not give a sufficient boost to new car sales.

The Government today faced new calls to bring in a scheme under which motorists could be paid to trade in their old cars amid concerns that the 09 registration out today will not give a sufficient boost to new car sales.

The AA said there was no time to lose in introducing a "scrappage" scheme which is adopted policy in a large number of European countries.

Business Secretary Lord Mandelson said last month that ministers were looking at such schemes, which many believe could increase sales while also helping ministers meet targets for cutting greenhouse gases.

But officials at Lord Mandelson's Department for Business, Enterprise and Regulatory Reform (BERR) cautioned then that no decision had been taken on whether to introduce scrappage in the UK, stating that they were yet to be convinced it would provide value for money.

In Germany, drivers receive 2,500 euros for trading in a car more than nine years old, while in France motorists can receive up to 1,000 euros.

Scrappage has also recently been introduced in Spain.

AA head of public affairs Paul Watters said today: "The AA says that there will be fewer new registration plated cars on the road than for many years and this will be a very visible example of how the credit crunch and hard economic times have slashed new car sales.

"The AA says that there is no time to lose in introducing a scrappage scheme which is adopted policy in a large number of European countries.

"We must give a boost to the sale of new cars which are cleaner and safer than the ones they replace."

Figures released last month showed that new car sales slumped by 30.9% in January compared with January 2008. February's figures are due to be published on Thursday.

The Society of Motor Manufacturers and Traders (SMMT) has also been urging the Government to offer financial aid to owners of older cars to help them buy newer models under a scrappage incentive scheme.

Chief executive Paul Everitt said last month: "There is a clear need to stimulate demand for new vehicles in the UK market.

"A number of EU member states have launched scrappage incentive schemes, which have the benefit of boosting consumer confidence and delivering significant environmental improvements.

"The UK motor industry is urging the UK Government to introduce a similar scheme and help sustain jobs and businesses throughout the sector."

An SMMT spokesman said today: "The industry remains firmly committed to the introduction of a workable scrappage scheme."