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House approves revised Cash for Clunkers bill

 
3 4,277 views Jun 9, 2009

The program will only cover old cars that cannot achieve above 18mpg in their combined cycles

The program will only cover old cars that cannot achieve above 18mpg in their combined cycles

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Earlier this year the original ‘Cash for Clunkers’ bill was rejected by the Senate because of research that showed the program wouldn't have made much impact on auto sales or emissions. A revised version of that bill has since been presented to Congress and was approved by the House in a round of voting earlier today.

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18mpg or less for one getting at least 22mpg. The value of the voucher would grow to $4,500 if the mileage of the new car is 10mpg higher than the old vehicle.

Owners of SUVs pickup trucks or minivans that get 18mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles, reports the Associated Press.


Importantly, the bill also would direct dealers to ensure that the older clunkers are crushed or shredded to get them off the road.

Similar plans have been in place in Germany for some time now, and citing these as the chief cause of spikes in new car sales in the German market, domestic automakers such as Ford and GM are convinced that a similar initiative in the U.S. could have good results.

Opponents said the bill failed to include incentives for used vehicles and represented an artificial incentive for the industry.





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Comments (3)

  1. ma_JSH avatar JSH Posted: 3/18/2009 12:03pm PDT

    Tough luck Toyota. The point of this bill is to stimulate the US economy, not the Japanese. If Toyota would have finished the Prius plant in Mississippi the Prius would qualify.
     
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  2. ma_Jason avatar Jason Posted: 3/18/2009 12:30pm PDT

    Should Toyota really care though? The Camry and Corolla are both eligible with this new package, and last time I checked these were the 2 of the best selling vehicles ever produced. I'd imagine more people would choose these cars over just about any GM, Ford, or Chrysler vehicle in their respective classes, even without a $3k-$7.5k government incentive for trade-in.

    Besides, the Prius hasn't undersold it's sales quota since it's been introduced, this bill probably won't change that. Toyota should panic about competition from Honda and Hyundai.
     
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  3. Lee Posted: 8/12/2009 8:36am PDT

    This program is not working for everyone.
    I have a clunker. Cadillac northstar. 2000
    Engine gone... Cant trade it in on this program because
    this origianally got 19 mpg. That Sucks ..
    Cant get food stamps cuz I make to much. Cant get assistance cuz I try to save money. Yet I am a Realtor and my husband is 76 and can not work.
    We get penalized for doing the right thing and the govermant only take care of the bums and folks not willing to work. Our system is broken.
     
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