Cash For Clunkers Bill
The Cash For Clunkers bill was just passed this week by the House to compensate consumers to trade in their gas guzzlers in exchange for more fuel efficient cars. The bill is sponsored by representative Betty Sutton out of Ohio that provides rebates of up to $4,500 by doing so. The next for the bill is to be passed by the Senate in the upcoming week.
The exact provisions under the bill include:
- Passenger Cars: Receive a $4,500 rebate if trading in a car 18 mpg or less for a car with 10 mpg or higher than the old vehicle. You can still receive a $3,500 rebate if trading in a car with 18 mpg or less in for a vehicle getting at least 22 mpg.
- SUVs/Pickup Trucks/Minivans: Receive the $3,500 rebate if trading in a 18 mpg or less vehicle for one that is at least 2 mpg better.
- Trucks and Vans ( 3 – 4 ton ): Receive possible rebate between $3,500 and $4,500 for 15 mpg vehicles or more.
There are a few stipulations that are required to receive the rebates:
- Vehicle must be in drivable condition
- Year must be 1984 or later.
- Must be insured to same owner for more than 1 year.
These just ensure that you are legitimately trading that you own and not just a car you bought to make a quick profit. If you decide to trade in a vehicle, you would receive a voucher for the leader in which you purchased or leased the car.
I like the idea behind this bill: get the old, polluting vehicles off the road. It is fairly expensive to fund, but can help improve the vehicles driving on the road as well as the struggling auto industry.
Comments
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June 11th, 2009Trackback from : Cash For Clunkers Begins Today | Big Green Blog
It will be interesting to see how this pans out, because I can see both positives and negatives to it.
It would be nice if they had added a provision to allow for a rebate on slightly older cars as well, although I understand it is dual purpose in that it is also intended to stimulate the auto industry. It is just that as soon as you drive a car off the lot it looses a great deal of value, so for those with limited funds, buying a new car often doesn’t make sense…
I think it is certainly a great bill, although my only concern is who will pay for the rebates.
Personally, I wish people would go out and buy more fuel efficient cars on their own, without the reward that way we could save this money and put it towards other green projects.
Till then,
Jean
I think it works fine on multiple levels. Look, low mpg cars are polluting and expensive to run. So you get the mate with his old Ford to buy a new one. Okay so instant prop to the dealership, which helps keep jobs, and allows some money to spread around. Then the mate buying the new car gets it cheaper but only at the expense of the government? (Is the Government supplying the money?)Then the guy gets the better performing vehicle, which helps reduce emissions and saves him money which is also pumped back into the system.
This would have probably worked a lot better when people did have money as referred by Tiger but it’s better then nothing.
David,
David, I believe its the tax payer’s dollars in the end. You know… we don’t have the statistical data in front of us, I am sure they have crunched the numbers, and perhaps they will actually gain way more by doing this, which I think is the case at least for our environment. For me personally I am happy they are doing it, we need more green bills in the white house =D
Till then,
Jean
It’s about time incentives are offered like this. Of course, it’s great that they also have some guidelines to prevent joe bob from digging out 30 cars from his front lawn and exploiting the system. I still feel like there’s a way people will try and cheat the system, though…hmm
Jean: It is all the taxpayers “bill”…from the 750 billion buck spending bill to this green nonsense we all have to pay for to “save the planet.” The planet doesn’t need saving. We now need to be “saved” by LOWER taxes. Look all across the spending that is being done. It cannot be sustained. This administration is stupid…spending more on top of what Bush & Paulson did. Where I come from if you dig yourself a hole too deep it is time to stop digging.
I don’t qualify because my car already gets good gas mileage. But my dad swears by the car buying process here:
http://excarsalesman.typepad.com
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for great MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate.
With the price increase, I’m certain some markets you’ll come out even as if they never offered this voucher. It is poorly written legislation.
Jaxon: Great point. I wouldn’t be surprised either if car dealers did this. Car dealers are very sneaky and may try to do something like this just to make a bigger profit. They may also just not allow a person using a voucher to bargain. This will allow them to get the prices they want and not what you want to pay for the car.
So nice of our kids to pay part of my next car purchase. The future generation is really going to like those higher taxes! Also glad that all those new cars take green house gases to make and all those clunkers when crushed won’t take too much energy to process into recycles, yeah right! Don’t like this idea one bit and I’m tired of my kids having to bail out this country. JFK’s quote come to mind, “ask NOT what your country can do for you, but what YOU (not your children) can do for this country”.
CASH FOR CLUNKERS…”WHAT A JOKE…
Just another way for the rich to get a “Break”
It only applys to “New Cars”. If you can afford a “new car” you really don’t need a $4500.00 gift from the government.
It gives the “rich’ a gift and doesn’t really help “poorer familys”. In fact it hurts them…there will be less affordable transportation out here.
I have a car that would quilafy for “Cash for Clunkers” and need and would use “gift” from the government. But instead I get to watch people paying $15,000.00 for a “new car” and getting $4500.00 from the government. I work I pay taxes…where’s my insentive to get a better mileage car…..