Two thirds of motorists questioned in a recent survey, believe that the Government's scrappage scheme will lead to increased sales of new cars in the UK.
The poll, carried out by JD Power, also revealed that 40% of respondents said they would be 'likely' or 'very likely' to purchase a new vehicle within the next six months as a direct result of the 2000 incentive.
Nearly 60% of motorists questioned, who own cars that qualify for the cash, indicated that they would actively consider buying a new car in light of the new incentive.
There's also some good news for premium car manufacturers, with 13% of respondents stating that they'd consider purchasing a luxury vehicle with the cash.
Susan Barnes, European automotive director at JD Power and Associates, said: 'This is an essential boost to the car industry at a critical time.
'It's good to see such positive intentions among all respondents, whether they qualify for the incentive or not.'
As a result of today's announcement, JD Power has forecast an increase of between 100,000 and 150,000 new car sales in the UK.
The JD Power survey has also revealed that motorists are more likely to opt for the 2000 scrappage scheme than take the Government's offer of 5000 towards an electric vehicle.
More than 75% of those questioned said that they do not believe electric or plug-in hybrid technology is 'proven enough' to make the switch.