Fiat's answer to budget motoring has been around for five years, but if you're on a shoestring, it's still one of the best cars in its class.
As well as the 2000 scrappage allowance, Fiat will knock another 100 off the price, bringing it down to less than 5000. This new ECO model has carbon dioxide emissions of less than 120g/km, so, as well as doing your bit for the environment, you'll also benefit from 35-a-year road tax.
The Panda isn't as well equipped as the Hyundai i10, but it is more refined and should cost you less to insure.
CD player, central locking, driver and passenger airbags, electric front windows, tilt-adjustable steering wheel.
Fiat Panda 1.1 Active Eco 5dr
Scrappage price: 4995
Cash price: 7095
Availability: 8 weeks
Best internet scrappage price: na
Best internet cash price: 5603 (Carfile.net)
Top speed: 93mph
Average mpg: 56.5mpg
CO2 output: 119g/km