Nearly 3 lakh Americans have lined up to trade in their gas-guzzling vehicles for more fuel efficient cars over the past fortnight under a government-subsidised programme aimed at getting rid of inefficient vehicles. The Cash for Clunkers programme has been so successful that the $1 billion appropriated for it was in danger of running out this week (well before the anticipated end date of November 1) before law-makers funnelled another $2 billion in an emergency measure. If the trade-in demand witnessed in the past two weeks remains on track, US will be on course to removing close to 7.5 lakh inefficient vehicles under a programme originally called the Car Allowance Rebate System (CARS).
Under CARS, now known as “Cash for Clunkers,” owners of vehicles (with some exceptions ) that give less than 18 miles per gallon (7.6 kmpl) can trade in their cars for vouchers between $3500 to $4500 value to be used towards purchase of new fuel-efficient vehicles. Certain conditions apply. Even though the vehicles will be scrapped, the trade-in vehicles should be in a drivable condition. They must be less than 25 years old, and only the purchase or 5 year minimum lease of new vehicles qualify for the voucher.
