U.S. Lawmakers Consider 'Cash for Clunkers'

[fnkngrv]

Kind of interesting....they do not say however if you must buy American or can buy foreign as well.



A new government plan to help phase out SUVs and other aging road hogs is gaining momentum on Capitol Hill. U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) have proposed the so-called "Cash for Clunkers" program which would give drivers a voucher of up to $4,500 for their old gas guzzlers. The money can then be applied toward the purchase of a more fuel-savvy vehicle.

According to The Detroit News, drivers will have a chance to buy a used or new car "with a fuel economy rating that exceeds federal targets for that class of vehicle by at least 25 percent. The vehicle must have a manufacturer suggested retail price of less than $45,000 and be a 2004 model or later." Meanwhile, the traded clunkers have to be "drivable", registered in the U.S. and have "a when-new fuel economy rating of less than 18 miles per gallon." Lawmakers say that the program can take at least 1 million hogs off the road and save 40,000 to 80,000 barrels of oil daily in four years.

Notwithstanding the opposition from aftermarket trade groups, Cash for Clunkers can work, provided that the voucher is not a blank check to former SUV drivers to spend the money on beer and beef jerky. It can also give the American automakers -- which seem to have finally found their inner green -- a much needed financial boost. The bill "would be an important part of helping getting America's struggling automobile industry back on its feet," Sen. Feinstein said.

[yaris-me]

It will create a money pit that will buy useless, worthless cars that the owners couldn't give away. In the end it will not stimulate anything except junk yard business'.:mad:

[Phaeton]

It's just a scam to get people buying new cars again.

[contraband831]

I like this scam ;)

[Altitude]

Since when is 2004 or later considered an "old clunker"?

[GeneW]

The vehicle must have a manufacturer suggested retail price of less than $45,000 and be a 2004 model or later." Meanwhile, the traded clunkers have to be "drivable", registered in the U.S. and have "a when-new fuel economy rating of less than 18 miles per gallon."

Let me get this straight.... they're gonna pay $4,500 for cars less than five years of age? These cars have to be driveable, registered in the US and have a "when new fuel economy of less than 18 miles to the gallon". Which means mostly SUVs, pickups and other heavier vehicles. Odds are that most of these cars still have payments left on them.

Does anyone realize how damn few vehicles that this law will cover? This isn't "Cash for Clunkers", this is "Cash for the re-election campaign of Schumer, Feinstein and Collins". Only ninety seven other senators who have similarly cute ideas for their constituencies.

Gene

[why?]

i missed that part, that is rather moronic. If it had been 2004 or older, well that might actually do something.

[eTiMaGo]

guys, read again, there's the word meanwhile in there

Trade in:
no mention of age
less than 18mpg
drivable
registered in the US

discount eligible for:
2004 or newer new or second hand car
MSRP no more than $45,000
mileage 25% better than class average

Personally I think this is a good incentive, even though quite artificial, it will help clean things up and in theory get the automobile industry out of its funk. On the other hand, you'll see less cool old cars on the road, and owners of such cars (who don't want to trade) might have a harder time finding spare parts...

[ChinoCharles]

http://blog.chinocharles.com/2009/07/cash-for-clunkers-a-huge-success/

Its working. :smile:

[Tamago]

my car is not eligible :(

[Yaris Hilton]

I despise this. They're forcing destruction of perfectly good cars. They're not requiring much boost of mileage, and nothing with regard to emissions. It's only another bailout for the car makers.

[Bob Dog]

It basicly makes all almost new cars that have already been purchased worth $4500 less: thats you and me brothers and sisters. More money from the tax payer to business, more government corruption.

[tomato]

I saw ads on TV, the other day. Toyota is participating in the program in California.

Looks like my 22 y old car wouldn't have been eligible either, too good on gas (25 MPG). Not to put down the Yaris or anything, but I still miss that old Honda now and then, really was really fun to drive. Probably wouldn't have passed the smog though, with standards getting higher and higher in california.

And I have to agree with Yaris Hilton btw. It is a shame to get people out of their old cars if they work perfectly well. A lot of older people in particular have older cars that work perfectly and they don't want to be obligated to "upgrade."

[ChinoCharles]

I flat don't agree. A billion dollars is a small price to pay to save 40 million gallons of gas annually (conservatively). We burn money for lesser causes. If only we would have spent a quarter of the money we wasted on that stupid war on programs like this!

Don't forget that this benefit is on top of the cars rolling off the line and the dealership employees that have a purpose for the next couple of months. THAT is a stimulus package.

That is all I'll say about it, though. :smile:

[Bob Dog]

Actually the war and the clunker bill lhave this very major element in common: they both funnel money from the taxpayer to the military industrial complex : the republians tending to favor the more weapons oriented sector, the democrats the more domestic sectors involving organized labor.

[GeneW]

My old Chevy Caprice "Doesn't qualify" because the EPA said that the mileage was "estimated at above 18mpg" at the "time of manufacture".

Don't mind, really, though I would have liked to have sold it to someone for a "clunker".

Gene

[Tamago]

it's a crap bill aim'd at the hank hill's from king of the hill.

[Bob Dog]

to the Hank Hills from the kings of capitol hill?

[JBougie]

Actually the war and the clunker bill lhave this very major element in common: they both funnel money from the taxpayer to the military industrial complex : the republians tending to favor the more weapons oriented sector, the democrats the more domestic sectors involving organized labor.

huh?

[GeneW]

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.

$96,000,000/22,782cars = $4213.85 per car. We know that's not the case since Administrative costs are probably part of this $96,000,000, the Gov't doesn't work for free.

What mystifies me is why this program, for it's "success" (roughly a day's worth of 2006 sales in the US, stated in Wikipedia at 7,667,066 cars.. http://en.wikipedia.org/wiki/Passenger_vehicles_in_the_United_States ) is being "suspended".

I don't consider a day or two worth of 2006 sales to be a "success", maybe a good start but not a success.

Gene