ECONOMY

Cash-for-clunkers scheme starts Monday

A government scheme offering car owners tax benefits as an incentive to upgrade their old vehicle with a new car starts on Monday.

According to the plan, someone trading in an old car and purchasing a new one with an engine capacity of between 901 and 1,400cc gains up to 960 euros.

Those buying cars with an engine capacity of 1.4 to 1.6 liters gains up to 1,430 euros. The incentive rises to 2,100 euros for cars that have engine capacities of 1,601 to 1,800cc.

Anyone buying a car with a 1.8- to 2-liter engine can save up to 2,800 euros.

Car owners whose vehicles are 12 years old or more can take advantage of the scheme. In a bid to draw more business via the scheme, some car dealers are offering additional savings via more favorable finance packages.