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I would be very carefull the mis-use of no follow can land you in trouble... looking at your screen shot talking about the menu, the word scrap cars is repeated over and over which there is no need, remove the scrap car from the menu, BUT keep on the landing page title as scrap my car in bolton (and then optimize your phrases in the meta tags) then this would be better, why not have Scrap Car Locations instead of Location

You are falling into the trap of over using internal anchors, as if there is 1000 pages, thats 1000 internal exact anchors saying scrap car bolton etc

same applies if you do within the footer site wide links as per hungry house, they just need to change it like justeat.co.uk have it, then hey presto ALL GOOD AGAIN (provided external links are not also over used

Having a landing page for each area is good for as long as it serves a purposes for users who are looking for something in that area, look at this company http://www.just-eat.co.uk/ they are flying with all their results at the top of the engines for all their takeaway town keyphrases... look at the difference between the two sites, espcially at the footer they have less links and no exact anchors used, they just mention the big towns without the keyphrases before it... this is biggest school boy error hungry house has done... and by having exact anchors in the footer like this will result with too many internal exact anchors, causing you to hit over optimization area!

TUT! TUT!

as per my previous reply above, its too many exact anchor links which is causing the over optmimzation problem... remember these are site wide links, so every page has this anchor text, so again if there is 1000 pages then thats 1000 internal exact anchors causing you to get hit by google latest over optimization penalty (AKA PENGUIN)