The European dealers' association CECRA is asking all European governments to launch scrappage incentive schemes to boost sales of new cars.
France, Germany and Italy have already introduced scrappage schemes, which offer buyers money if they exchange old cars for new models.
CECRA said other governments should follow urgently with "effective" scrappage incentives.
Such incentives would improve consumer confidence and encourage people to buy new cars. They would also have environmental and safety benefits by replacing older, more polluting cars with newer, safer models, CECRA said.
Brussels-based CECRA represents 120,000 authorized car dealers and repairers and about 230,000 independent repairers.
Several European Union states are planning to introduce incentive schemes for scrapping old cars.
The UK's Society of Motor Manufacturers and Traders (SMMT) submitted a proposal on a scrappage incentive scheme to the British government in early February and urged government to implement it as soon as possible.
The proposed UK scheme would allow both cars and vans over nine years old to be scrapped in return for a £2,000 (2,257 euros) cash incentive towards a new or nearly new vehicle.
The SMMT said schemes recently introduced in Germany and France are likely to generate some 200,000 to 400,000 extra car sales.
It estimates that up to 250,000 cars and 30,000 vans could go through the scheme over an 18-month period in the UK.
In Germany, people who scrap cars that are at least nine years old and then buy new vehicles receive certificates worth 2,500 euros. In France, the government gives a bonus of 1,000 euros to people who swap 10-year-old cars for new models.