Ford has launched an incentive for UK consumers to trade in cars over seven years old by offering £2,000 off some new models.

The company is the latest car maker to offer such a scheme but unlike schemes by BMW and Mercedes, which are only for diesels, Ford will also accept petrol cars.

Under Ford's scheme old cars, from any manufacturer, can be exchanged until the end of December.

Ford says all of the part-exchanged vehicles will be scrapped, having an immediate effect on air quality.

The scrappage scheme has been welcomed by Ford dealers in Gloucestershire.

Dan Goodall, sales manager of Chipping Campden-based Cutts of Campden Ford, said: "I think this is a real win-win for both our customers and the environment.

"Getting £2,000 towards a brand new, high efficiency Ford and getting an 'old smokey' off the roads is good for everyone. We know we're going to be very busy."

Edmund King, AA president, said: "The AA has always been supportive of scrappage schemes which help to encourage the uptake of cleaner, greener vehicles.

"The Ford scheme is particularly attractive as it applies to both cars and vans. As vans are the fastest growing source of traffic, any measures that puts greener vehicles on the road is most welcome."

The scrappage schemes will help support sales at a time when demand for new cars is showing signs of a sustained drop for the first time in about six years.

In July, new car registrations fell for the fourth consecutive month in a row.