Ford is now offering between £2,000 and £4,950 off new models when UK customer’s old petrol and diesel cars are traded in.
The vehicle manufacturer says it will accept cars from any brand, as long as they are built to emissions standards applied before 2010.
The part-exchanged vehicles will be scrapped rather than resold, which Ford claims will have an immediate positive effect on air quality.
The offer, which continues until the end of December, is also open to businesses, which could secure up to £7,000 by trading in an old commercial transit vehicle.
Environmental lawyer association ClientEarth backed the scheme.
Lawyer Anna Heslop said: “It seems the motor industry is finally waking up to the damage dirty diesels are doing to our lungs as well as their own reputation.
“What we need is a thought-through, coherent strategy from government to help people to move to cleaner and more sustainable technology.”
The UK Government has said new diesel and petrol cars would be banned from 2040.