A new economic stimulus program in the United States was unveiled earlier today which has been called the “Cash For Clunkers” program. It is designed to give up to $4500 to consumers who trade in gas guzzling cars towards purchasing a fuel efficient car.
If you have a car that has been insured at some point in the last year, and is not older than 25 years, and currently achieves less than 18 miles per gallon (combined highway/city) you can turn it in and receive a voucher worth either $3500 or $4500 towards a new car purchase. If the new car gets 10 miles per gallon MORE than your old car, you get the $4500. If the new car gets more than 4 miles per gallon MORE but less than 10 miles ger gallon MORE than your old car you get $3500.
$4 Billion has committed to this endeavour for a period of one year (but note that it has passed the House vote, but has yet to be passed by the Senate), which means the government could be stimulating sales of one million new cars. US auto sales in total were 16 million in 2007, and 13 million in 2008 (source: MSNBC).