As soon as Monday, the US House of Representatives will vote on a greenhouse gas emissions ‘cap and trade’ system. Attached to this legislation is a ‘Cash for Gas Guzzlers’ provision that could see Americans get a voucher for up to $4500 if they trade in an older, inefficient vehicle towards a new one that is more thrifty.

Details remain to be worked out, but the plan is for 1 million consumers to get a $3500 voucher if they trade in a car that gets less than 18mpg for a new one (built anywhere in the world) that gets 22mpg. If the new vehicle gets 10mpg more than the old one, the voucher would be $4500.

A similar scheme in Germany has resulted in almost a 20% increase in new car sales, while other EU markets have crashed like the United States. Making sure the consumer has owned the trade-in for at least a year is expected to be part of the provisions to help avoid fraud.

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