Currently reading: US triples scrappage funds
Additional £1.2 billion put up after initial £600m runs out in 10 days

The US Senate has agreed to invest a further $2 billion (£1.2bn) in America's car scrappage scheme, after initial funds of $1bn ran out in 10 days.

America's scrappage scheme is officially called the Car Allowance Rebate System (CARS), although it has been dubbed 'cash for clunkers'.

Owners of old cars and trucks gain up to $4500 (£2700) towards a new vehicle - depending on the fuel economy of the vehicle they are trading in and buying - in exchange for their old model.

"Cash for clunkers has been a proven success," said US president Barack Obama.

"The initial transactions are generating a more than 50 per cent increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone, and they are getting the oldest, dirtiest and most air-polluting trucks and SUVs off the road for good."

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