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Scrappage scheme: How the US version works

The US government has revealed how its version of the scrappage scheme will work. Here are the details to compare against the UK version.

The US government’s $1 billion (£600 million) scrappage scheme is aimed at getting cars that do fewer than 18 miles per gallon (mpg) off the road for a new car that will do at least 22mpg.

Customers that buy a new truck will have to buy one that will match at least 18mpg. The US government says the purpose of the scheme is to promote fuel efficiency, but it is certainly an American interpretation of fuel efficiency.

The programme will run until November 1 and will offer vouchers of $4,500 (£2,726) to customers that scrap their cars.

Customers have to buy their new cars from an approved dealer that is joined up to the scheme and the car they are trading in must be less than 25 years old, insured and registered to the owner for over a year.

The scheme covers domestic and foreign-made vehicles alike.

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