On Monday, May 18, Britain began offering cash incentives to buyers of new cars who scrap their old model, a program intended to stimulate new car sales.
The £300 million (about $457 million) initiative, announced in April's budget, aims to boost the ailing car industry and give a boost to manufacturers. New UK car sales were down 28.5 percent in the first four months of 2009, compared with the previous year.
Accordingly, the government and car manufacturers are sharing the cost of giving a discount of £2,000 ($3,000) to qualified motorists. In order to qualify, the old car or van must be roadworthy, at least 10-years old, and weigh less than 3.5 mt. Also, the new car should be less than 3.5 mt.
The so-called "Bangers for cash" scheme will continue until February 28 next year, unless the £300 million allocated by the government run out.
The Society of Motor Manufacturers and Traders, which had lobbied for the program, has said it hopes that the British program will be as successful as the similar programs in Germany, France and Italy.
In addition to stimulating car sales, the program is intended to reduce pollution by getting older, less fuel-efficient cars off the roads.