Arnold Clark, the Scottish-based car dealership, is to create 700 jobs across the UK.
It will employ 500 more sales staff, 120 modern apprentices and 80 support staff by February 2010.
The scrappage scheme has been hailed as part of the reason behind Arnold Clarke's recruitment drive.
Around half the jobs will be created in Scotland, with the remainder in the north of England, including a new, yet-to-be-named site.
Chairman Sir Arnold Clark said: 'With the global economy going through such a difficult period, our announcement today can be seen only as a positive step in helping to combat unemployment.
'The extra 700 jobs can partly be attributed to the stabilising of the car industry since the introduction of the Government's scrappage scheme in May.'
Pace of decline in car industry is 'slowing'
The news of the 700 new jobs comes as the Society of Motor Manufacturers and Traders (SMMT) said the pace of decline in car production was slowing, but called for more Government support.
'The slowdown in the rate of decline of UK car production reflects the impact of scrappage incentive schemes across Europe,' said Paul Everitt, SMMT chief executive.
'The UK motor industry is starting to stabilise, but it remains fragile. Industry needs the Government to deliver support through the Automotive Assistance Programme and encourage banks to provide access to much-needed finance and credit.'