The Ministry of Transport is giving out hundreds of dollars worth of bus passes in Wellington and Christchurch this month, in exchange for old cars.
The first 150 people to hand over a dilapidated vehicle to participating scrap metal dealers in the cities will receive $250 worth of travel on local buses and the chance to win a new car.
The Ministry says people can also get up to $250 in cash for their vehicles.
The scheme, which has already been run in Auckland, is aimed at getting environmentally unfriendly vehicles off the roads, and gathering information so other incentives can be developed.
Surrendered vehicles must have had a warrant of fitness in the past two months, be registered and able to be driven.