Jun 18 2009
Congress Approves Cash for Clunkers Program
We really try to avoid talking about the pros and cons of government spending because it is an issue that will never be resolved, but this issue affects lots of people here in Sacramento. Whether you agree or disagree with it, Congress has approved a “cash for clunkers” program, bill H. R. 2346, Thursday to provide government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles after Senate Democrats narrowly defeated a Republican effort to kill the plan.
Cash for Clunkers
In the Sacramento area numerous dealerships have closed in the last couple of years; who knows if this will help the remaining dealerships or not. But whether you work in a dealership or just drive a car or whether you agree or disagree with this billion dollar bill at least be aware that it has happened. If congress is going to spend a billion dollars, let’s hope that the people in Sacramento benefit from it by being able to purchase more fuel efficient vehicles since the price of gas is on the rise again.
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Summary of Cash for Clunkers Agreement |
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| Minimum Fuel Economy for New Vehicle | $3,500 Voucher | $4,500 Voucher | |
| Passenger Car or minivan | 22 mpg (EPA combined) | Mileage improvement of at least 4 mpg | Mileage improvement of at least 10 mpg |
| Light-duty truck | 18 mpg (EPA combined) | Mileage improvement of at least 2 mpg | Mileage improvement of at least 5 mpg |
| Large light-duty truck (6,000-8,500 pounds) |
15 mpg (EPA combined) | Mileage improvement of at least 1 mpg or trade-in of a work truck | Mileage improvement of at least 2 mpg |
| Work truck (8,500-10,000 pounds) |
Trade-in must be at least pre-2002 | ||
Our legislators aren’t the first to think of this; there is a program in Germany that has been successful in helping replace vehicles with more fuel efficient models by giving cash incentives. If you scrap your car in Germany, the government will give you $3,200 towards the purchase of a new vehicle; the buyer must get rid of a car that is at least 9 years old, and must buy a car that meets emissions standards.
Here in USA the great state of Texas already has a program in place called the “Drive a Clean Machine” that gives owners of ten-year old gas-powered cars $3,500 toward the purchase of a late-model vehicle. The program helped replace almost 14,000 vehicles in 2008.
[...] the Department of Transportation. Not everyone agrees with the Cash for Clunkers idea, but as the Sacramento Scoop notes, whether you agree or disagree with the bill, Congress is spending a billion dollars on it in [...]
I don’t qualify because my car already gets good gas mileage. My dad swears by the car buying process here: http://excarsalesman.typepad.com/ It is kind of similar.
I haven’t tried it yet, but I might because it looks good.
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you’ll get a voucher from increased prices. I’m certain some markets you’ll come out even as if they never offered this voucher. It is poorly written legislation.