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First used on brand-new cars and now launched on used cars. A new 'green' labelling system for used cars has been launched with the support of over 2,000 dealers. The colour-coded system is similar to the one already applied to new cars, with the labels making it easy for buyers to tell how economical the car is.

The label gives details of a car's make and model, as well as:

• The car's CO2 emissions in grams per kilometre

• The official mpg figure

• The estimated fuel cost based on 12,000 miles driving

More economical cars are distinguished with green labels while cars with high fuel consumption and CO2 emissions get red labels.

Dealers that sign up for the scheme can choose whether to label cars up to two years old or whether to label cars that have been registered since 2001, when the modern scheme of CO2 banding was first introduced.

However, 94% of participating dealers have opted to label old cars, too. Minister for Transport, Sadiq Khan MP, said: 'I hope as many dealers as possible will participate and I encourage used car buyers to look for the label when they consider what to buy.'

From its launch over 2,000 garages have signed up to the scheme including franchised dealers, independent garages and car supermarkets. Over 200 Ford Direct centres are using the label, however, Ford plans that all 350 members of its franchised network to sign up as soon as possible.

Previous tax band table shown above