Berlin - Owners of old cars in Germany swamped a hotline with calls this week after the government invited applications for a big cash handout to anyone crushing an old car and buying a new one.

Berlin officials said the hotline registered 270,000 calls on the first day, Monday, far more than telephonists at the trade agency BAFA could answer. On Tuesday the rush ebbed a little to 150,000.

The government has promised 2,500 euros (3,250 dollars) to anyone owning a car more than nine years old who takes it to the wreckers and buys a new low-pollution car.

The payouts will continue until the budgeted 1.5 billion euros has been used up. Part of the sum will be for administrative costs, but the scheme is expected to bring nearly
600,000 new cars on the roads.

Although the aim is to help Germany's troubled car manufacturing industry, imported cars will be treated the same as German-made ones.

The "free" handout has been the talk of Germany for days. A free-for-all is expected next Tuesday when the application form is to be offered on the BAFA website to download. Some predict the budget may be used up within a week.

Even owners of late-model cars have wondered if they might benefit. To curb abuse, the applicant must have owned the old car for at least one year and become the registered owner of the new car.

BAFA said Thursday it was confident there would be enough money for all applicants, at least for the first few days.

The old cars must be destroyed by wreckers, who remove all useful parts, glass and plastic and put the steel remains in a metal press. (dpa)