Punto (£8,435-£14,900)

Fiat has devised its own scrappage scheme for purchasers of its Punto range and made the terms more flexible. Owners of cars, which are at least eight years old and which have been taxed and insured for the previous three months, qualify for the £1,000 rebate on the Punto. That and the reduced Vehicle Registration Tax mean that the cheapest model costs £7,435.

The scheme applies only to the Punto Europe's best-selling car in 1997 and is aimed at motorists who fell outside the net of the scrappage scheme. The offer will run until March 31st.

Fiat is also operating Personal Ownership Programme deals, offering, for example, a 9.31 per cent APR on its Cinquecento. The recommended on-the-road price of the car is £6,770 and can be purchased with a deposit of £299, repayments of £109 for 48 months and a final payment of £3,000. The total cost of credit is £1,761.