LONDON, March 14 (Reuters) - The British government is considering giving credits of 2,000 pounds ($2,773) to new-car buyers who turn in their old cars, The Times reported on Saturday.
A similar plan in Germany is credited with stimulating demand for new cars during the economic downturn. It is also popular because newer cars have lower carbon emissions.
Business minister Peter Mandelson is looking closely at the plan, called scrappage, and it could be announced in April's budget, The Times said on its website.
Citing senior government sources, it said talks were at an "advanced stage."
Cars that are at least nine years old could be handed in under the British plan and exchanged for the discount on new vehicles or ones that are no older than one year.
Under pressure to prop up the auto sector, which supports tens of thousands of British jobs, Mandelson on Thursday hit out at the Bank of England, criticising the pace at which it was helping car-purchase finance companies. (Reporting by Avril Ormsby; Editing by Gary Hill)