Efforts to boost car sales also come in the guise as saving the environment. Both the US and the UK have rolled out their respective “cash for clunkers” programs. These are programs that wold encourage owners of older vehicles to scrap their cars in exchange for discounts on purchases on new vehicles.
This not only encourages the sale of new cars, it also eliminates the number of guzzlers and belchers on the road. New cars are designed to be more economical and environment-friendly. The US government has allotted $1 billion for vouchers to support the program.
The auto industry is expected to benefit from this with projections of at least 250,000 new units sold this year. The US Senate already passed the bill on a 91-5 vote. The Congress is also expected to pass a siilarly drafted bill.
Qualifications for the US program include:
- Vouchers are either $3,500 or $4,500
- Car is no older than 25 years, mileage is less than 18 mpg
- Owned for at least a year
- New car must be less than $45,000 and get more than 22 mpg
For the UK:
- Car is taxed
- MOT test
- Registered on claimant’s name
- Own the car at least a year
Source: Business Week
