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.