At some point during the 1990s, although I don’t exactly remember the precise moment, wood ceased to be fashionable as part of a car’s interior.

The premium German brands (BMW, Mercedes-Benz and Audi) were never very good at doing wood in a tasteful way back then, but perhaps it was their diversification into alternative finishes such as aluminium or lacquered carbon fibre that made wood seem firmly rooted in the 20th century.

Then perhaps Rover’s dogged persistence in having slices of tree adorning the dashboard and doors, when as a brand it was seen as past its sell-by date, that finally seemed to consign wood trim to the scrapyard.

Since then the Germans haven’t got much better at it – the matt finish wood offered in the Mercedes-Benz CLS horrified me – and others like Volvo have tried to provide a more modern take with unique varieties and unusual finishes, although these haven’t always looked like genuine wood should.

Jaguar has a great tradition in this area, but in recent years, it also has gone down the route of aluminium and carbon fibre. Yes, customers could still select wood, but the talking point was that it offered them 21st century alternatives.

The Jaguar XF, launched to great acclaim in 2008, perhaps represented too much of a break with the company’s traditionalist past to seem right with the ambience of an old library.

Yet with the new XJ Jaguar has made wood appear ‘cool’ again.

The XJ is more indulgent inside than other Jaguar models and the combination of modern design, a bold, sweeping line around the top of the dashboard and enough chrome to make the interior feel special without appearing garish, this must now be the most pleasant car to sit in for less than £100,000.

Wood in the new XJ is without a doubt the most appropriate finish, but Jaguar has also managed to make is modern and in keeping with the forward-looking philosophy of the rejuvenated brand.

* Jaguar XJ available to order now sale now with prices ranging from £52,500 to £88,000. Deliveries begin early in 2010.

On Budget Day 2009 the Chancellor of the Exchequer is expected to outline a 'scrappage' incentive to help boost new car sales.

As people stay away from new car showrooms, the Treasury misses out on the 15 per cent VAT from every lost purchase.

New car registrations in 2009 are expected to be perhaps 600,000 lower than in 2008. That amounts to a lot of VAT missing from Government coffers.

So the Chancellor might as well write this off as a handout to tempt people back into showrooms.

A similar scheme has been operating in Germany for a few months and new car registrations are significantly higher than in 2008.

Customers are offered €2500 (£2000) for trading in a car at least nine years old. It has boosted sales of smaller cars in Germany.

But with Sterling's weakness against the Euro, car prices have been increasing in the UK. Ford has implemented two price increases already this year, and many other car manufacturers have
followed suit at least once.

A medium specification Ford Focus is now about £1500 more than it was in December 2008.

Many customers will be no better off than they were several months ago, and with pre-registered vehicles around in significant numbers they could make bigger savings choosing one of these.

The Government has dithered for so long over introducing this incentive that its value, if brought in later this month, will be much lower than it seemed when it was mooted a few months ago.