Alison Jones, director of Volkswagen UK, is bullish, saying: "With this new Scrappage Upgrade scheme, there's never been a better time to step up from an older diesel into one of our new, lower emission range of Volkswagens".
Owners are able to trade in the vehicle to benefit from incentives - ranging from £1,800 to £6,000 - against the majority of new models if the new auto is ordered by December 31, 2017.
The offer stands for any make or model of diesel auto first registered in the United Kingdom before December 2009, and marks another recovery effort from the company battered by a massive emissions scandal two years ago.
The automaker launched a similar program in Germany following an industry summit with government officials in August.
The scheme marks increased efforts by the auto manufacturer to recover from the emissions scandal, where the software in cars manipulated emissions tests.
It comes after VW's emissions scandal, in which 11 million vehicles globally were found to have cheated on emissions tests. Manufacturers have already launched scrappage schemes overseas, with VW offering substantially more, a €10,000 incentive, to German auto owners.
Volkswagen's electric auto and plug-in hybrid models are also included in the deal.
Volkswagen's incentives are particularly impressive, with consumers being able to save as much as £10,000 off the price of a new e-Golf once the government's plug-in vehicle grant has been taken into account.
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"We've seen a bit of a drop in the United Kingdom vehicle market this year after years of really accelerated growth".
Jyrki Katainen, vice president for jobs, growth, investment and competitiveness at the European Commission, said: "The new emissions tests are a milestone in our ongoing work for cleaner and more sustainable cars over the coming years".
However, he said it would also be important to VW that its United Kingdom competitors have similar schemes running, and VW will probably have pitched their discounts at that level in order to compete.
"Owners of older vehicles typically don't have the money to spend on a new vehicle, even with these discounts - in normal circumstances it would be far more likely that they would trade up to another, less old used auto".
VW's United Kingdom scheme offers substantially higher discounts than some of its competitors, which seem to hover around the £2,000 mark as an upper limit.
All vehicles exchanged will be scrapped and processed at authorised treatment facilities run by Autogreen.
The Japanese auto giant's scheme runs from 1 September to 31 December and is open to any vehicle more than seven years old. Toyota's offer Is £4,000 off for models over seven years old.