Ford Ka(Image © Ford)

MSN Cars is here to help, as we break down the top ten scrappage applicable cars in the most popular market categories.

Kicking off a series of guides to the ten best cars to scrap for in the most popular segments in the UK car market, here is our round up of what's on offer in the city car sector.

And as downsizing continues to be a dominant theme in the marketplace, don't underestimate the draw of these diddy gems.

We've got everything here - from the very cheapest budget motoring to eco heros, premium contenders, trendy go-getters and fun to drive rollerskates. You may be amazed just how much quality you can get for so little money - assuming you've got a qualifying 10-year-old car to trade for the scrap scheme's £2,000 cash.

Toyota Aygo
Along with its more expensive sisters, the Citroën C1 and Peugeot 107 - the Aygo has been near to the top of the city car league for years now. And with recently revisions - including subtle facelifts - it will be keeping the newer competition honest for some time to come.

Under the scrappage scheme, the entry-level Peugeot and Citroen are available for just £6,045 but the Cheapest Aygo is £5,785. What's more, the tiny 1.0-litre three-cylinder engine under the bonnet emits just 106g/km and officially returns 62.8mpg. Road tax is £35 a year. Fun to drive, and cheap to run - it's scrappage scheme ideal.

Ford Ka
The new Ford Ka may not have the same spirit as its iconic predecessor, while coming at surprising cost. But safety levels are much improved, and if you want to give your city car a bit of a B-road battering now and again Ford's littlest model remains the one to choose.

Suspension changes compared to platform-mate, the Fiat 500, have done wonders for the handling - even if the ride isn't exactly cosseting. We prefer the petrol model, and under the scrappage scheme you can get a top spec Zetec for £8,395 - £200 less than the entry-level Studio at standard list.

Toyota iQ
There is no denying it. The Toyota iQ is expensive. Since the world's largest carmaker already had an entry-level city car - the Aygo - it clearly felt it could aim higher with the clever iQ. Consistently described as the iPod of cars, its remarkable design can accommodate up to four passengers.

That's despite being shorter than the original Mini. With a high quality of finish, just 99g/km CO2 meaning £0 roadtax, plus plenty of popularity, the scrappage scheme is about the only way you'll see serious money off this tiny wonder. £2,000 for your old car means a 1.0-litre iQ for £7,615.

Suzuki Alto/Nissan Pixo
Another pair of city car stablemates here. Suzuki builds the Alto, Nissan re-bumpers it and sells it as the Pixo. Why should you care in either case? Because the Alto-Pixo conglomerate comes compete with remarkable efficiency - the 1.0-litre triple offering petrol-impressive figures of 103g/km CO2 and 64.2mpg. Second only to the iQ.

Of the two, we'd go for the Nissan. Recent price changes mean the Suzuki Alto comes in at a tempting £5,495, but the Pixo delivers the knockout blow at £4.995. Cheap to run and cheap to buy - a bargain.

Hyundai i10
The Hyundai i10 might not be able to match its most frugal city car competitors - but returning 56.5mpg and emitting 119g/km, the 1.2-litre petrol still qualifies for the £35 annual tax band. And really, that's as bad as the bad news gets for this car: it's a super-sensible, super-practical choice.

Spacious seating for four, clear controls, quality construction and a decent drive isn't enough. The i10 also comes with air conditioning as standard and a five-year unlimited mileage warranty. On top of that, Hyundai is offering more than £2,000 off most models, bringing the basic i10 Classic down to £5,195.

Kia Picanto
The Kia Picanto is cute, well made within its budget-orientated constraints, easy to drive and reasonably specified. But it would be on this list even without any of those features. Because the scrappage discount has reduced the entry-level version of this car down to just £4,495. That is seriously cheap.

Especially as the 1.0-lite engine under the bonnet is another that commands just £35 a year in roadtax. CO2 emissions are 117g/km, and combined fuel consumption is 57.6mpg. The Kia Picanto is a budget motoring dream. And although the warranty is limited to three years, the distance you can travel is uncapped.

Fiat 500/Panda
Fiat has a couple of crackers in the city car sector, and they court two different kinds of audience. Let's start with the superstar. The Fiat 500 is a fabulous package - wonderful design, surprisingly practical, and fitted with a selection of characterful, efficient engines. Seven standard airbags make it safe.

And with £2,000 off every version under the scrap scheme you can pick up a 1.2 Pop for £6,700. But if you want more deal and less fancy fuss, try the Panda. Bigger inside and cheaper to start with, extra discount from Fiat means it's now available from just £5,350.

Renault Twingo
The Renault Twingo is all about the youth appeal. It's funky to look act, funky inside, chuckable through the twisties, and cool enough to hang out in the drive-thru car park amongst the big boys. The 1.2 turbo is amusingly brisk, while the Renaultsport 1.6 is an absolute riot.

Real bargain seekers will have to put up with the base spec naturally aspirated 1.2, however - which comes complete with a slightly disappointing 50.4mpg combined and 130g/km CO2. On the plus side, the scrappage scheme reduces the Freeway trim level down to £5,395 - just don't expect too many creature comforts.

Volkswagen Fox
Volkswagen is not a marque you would typically associate with inexpensive motoring. Yet the German carmaker is taking the scrappage scheme as an opportunity to do some deadly damage to its rivals - knocking very nearly £4,000 off certain Golfs. You won't save quite that much in the city car segment...

But then, the Volkswagen Fox wasn't all that expensive in the first place. Now with £2,000 discount it's down to just £5,110 - we have no idea exactly how far back in history you have to go to find another VW going so cheap, but it's a long, long way, that's for sure.

Smart ForTwo
The Smart ForTwo needs no introduction - it's the car that proved urban runabouts could have a premium image, too. Cursed for its gearbox (until you get used to it) but praised for its safety levels, even the slightly larger second generation is still short enough to park noise into the kerb.

Reasons to consider the ForTwo under the scrappage scheme include the new CDi diesel's position as the most economical car currently on sale. It's capable of a staggering 86.5mpg combined, officially, while emitting just 88g/km CO2. You can even have a Cabrio for £7,831 - making it the cheapest, greenest convertible in the UK.