The government has urged van insurance holders to act quickly to take advantage of its vehicle scrappage scheme, as it is nearing its completion.

More than three quarters of the £400 million allocated by the government for the scheme has been used up, leaving just 82,000 possible new vehicle orders.

As the scheme draws to a close at the end of February, the business department has said a quota system will be put into place whereby order quotas will be given to manufacturers based on brand popularity.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT), show that the scrappage scheme accounted for 3.9 per cent of new van registrations in December and 3.6 per cent over the May-December period.

Commenting on the scheme, SMMT chief executive Paul Everitt said: "This has provided an important boost to the UK motor industry and greater confidence for consumers.

"Alongside the economic benefits, the scheme has helped to promote the take-up of cleaner, safer and more fuel efficient vehicles."