25 Jul 2009

Car scheme details issued

7:14 am on 25 July 2009

The United States government has issued details of a scheme, aimed at persuading owners of "gas-guzzling" cars to exchange them for more fuel-efficient vehicles.

The $US1 billion programme runs until 1 November. It offers vouchers worth up to $US4,500 for people scrapping vehicles that do fewer than 18 miles per gallon.

They must buy a new car with a rating of at least 22 mpg or a light truck that manages at least 18 mpg.

Similar schemes in Europe have helped car sales.

The BBC reports the vehicles to be traded in should be drivable, less than 25 years old and have been insured and registered to their owners for at least a year.

The replacement vehicle must be brand-new and should have a retail price of no more than $US45,000.

Neither the old car nor the new one has to be US-made. The scheme covers domestic and foreign-made vehicles alike.

The stated purpose of the scheme is to promote fuel efficiency.