Those who trade in a car manufactured before 1995 will be eligible for a $2000 rebate when they purchase a vehicle that has a rating of six or higher in the government’s green vehicle guide.

The scheme will apply to the first 200,000 cars handed in.

Orange car dealer John Grum is expecting a modest increase in sales.

“I wouldn’t say it would be a big boom but it will help make people’s minds up if they were already thinking about it,” he said.

With the eligible new or newer cars in the government’s green vehicle guide ranging from $13,000 to $40,000, Mr Grum said the rebate would be out of the reach of many people.

“Some people just can’t afford a dearer car,” he said.

The new cars which can be purchased under the rebate scheme include the Toyota Hybrid Camry, Hyundai Getz, Mazda 3 and Ford Falcon EcoBoost.

The government says the scheme will result in a reduction in carbon emissions of one million tonnes by 2014.

Dealer Tim Leahey said the proposal was “sensible” in terms of reducing greenhouse gas emissions from vehicles.

“If they’re fair dinkum about emissions and greener cars, then every car that is manufactured today is much better from a fuel efficiency point of view than those made before 1995,” he said.

The $394 million promise will be funded with money taken from other programs including solar, carbon capture and storage and renewable energy programs.

Orange resident Phillip Cusack recently purchased a 1984 Ford Laser for about $1500 and said the rebate program didn’t interest him.

“I wouldn’t trade it in. There’s only 100,000 kilometres on it. It’s pretty cheap on juice,” he said.

Older cars traded in under the scheme will be scrapped.