Just as the British and Japanese Government have been adopting subsidy schemes to encourage consumers to invest in new auto-mobiles, the US government has offered another sale boosting initiative scheme. The program has been described as a simplified version of the ‘cash-for-clunkers’ program and works by offering $3,500 or $4,500 cash vouchers to new car buyers who are willing to scrap an old vehicle. In order to qualify the following conditions must be satisfied:

1. The car that is traded-in must have had it at least a year

2. The vehicle must be a road worthy drivable vehicle

3. Dealers must provide assurance the trade-in is scrapped.

The program was passed by the Senate Thursday in a bid to kick start the waning US manufacturing industry. The Introduction of the program which should be operational by early August has been met with varied response. An anticipated 10% sale increase is forecast, although CEO of consumer website sceptically claimed that even “250,000 new vehicle sales will not provide the impact needed”

A similar scheme has been in affect in the UK and has seen approximately 60,000 orders already placed. Alternatively, UK car owners who are still unable to invest in a new vehicle as part of the scrappage scheme, may find that buying new car parts will also benefit industry.

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