Angelika In Germany, you have known it for a long time: the ominous scrappage bonus, which is intended to drive potential buyers into car dealerships to exchange their old cars for newer, more environmentally friendly models. After much back and forth, America followed suit with the "Cash for Clunkers" campaign, officially called the "Car Allowance Rebate System."
Customers who trade in their old car for a more environmentally friendly new one receive a bonus when purchasing a new vehicle. However, not every old banger is accepted; a "clunker" can't be older than 25 years and has to consume at least (!) 13 liters per 100 kilometers. Since Americans do not measure fuel consumption in liters per 100 kilometers but rather by how many miles (1.6 kilometers) a car can drive on a gallon (3.79 liters) of gas, the value was specified as 18 "miles per gallon" (mpg), and a clunker had to run less than 18 miles on a gallon.
For the new car, there was a bonus of $3,500 if it achieved at least 4 miles more, meaning 22 miles per gallon. This corresponds to a consumption of 10.7 liters per 100 km. The state even offered a $4,500 bonus for an increase of 10 miles, meaning new cars with a consumption of less than 8.4 liters per 100 km.
If you're wondering how to convert "Miles Per Gallon" to "Liters per 100km" and vice versa, here's the formula: You divide the number 235 by the given value. For example, if a car achieves 20 miles per gallon, that's 235 divided by 20, which equals 11.75 liters per 100km. Conversely, if a German car consumes 7 liters per 100km, that's 235 divided by 7, which equals 33 miles per gallon.
Politicians, however, did not anticipate the success of the program. People practically stormed the car dealerships, and within just a few weeks, the allocated billion dollars was exhausted.
In early August, Congress approved another two billion, but that didn't last long either, and last Monday, on August 24th, the "Cash for Clunkers" program officially ended. It's amazing how a little financial incentive can suddenly turn gas guzzlers into little environmental angels!