Spain Will Extend Car Scrappage Scheme Again

The Spanish government plans to extend its long-playing new-car sales incentive plan through July 2016, a source tells Reuters.

The current €225 million ($240 million) extension, which began in May, pays buyers €1,500 to turn in an eligible old car and buy a new one. Payments are split by the government and carmakers.

Spain introduced a similar scheme in 2012 and has extended it multiple times since then. The payouts are credited with bolstering a 26-month run of year-on-year sales increases.