The US Cash for Clunkers program (the US equivalent of our scrappage scheme) has been approved another two billion dollars. It was reported last week that the program was running out of money and the fund would be exhausted by today.
President Obama said "Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost". Most recent figures revealed that more than 775 million dollars of the original one billion had been spent. Dealers said the additional money would help them maintain a sales pace they haven't seen in months with the sale of new cars. Car dealer’s sales improved dramatically in July, Ford Motor Company achieved its first year over year sales increase since November 2007 due to the cash for clunkers scheme. Officials in the US predict that the new money will last until Labor Day and there would be at least another 500,000 new car sales.
Under the Cash for Clunkers scheme new car buyers are eligible for a voucher worth 3500 to 4500 dollars depending on the combined city/highway mileage on their used car and all traded in used cars are crushed and shredded.