Daily Auto News “Cash for Clunkers” Bill Passes House
Daily Auto News
The House of Representatives has passed a bill that would provide car shoppers with a cash voucher for trading in an old car with poor fuel economy when purchasing a new, more efficient car. A similar bill has been proposed pass the Senate, and has the support of President Barack Obama.
The AP reports, “Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.” Trucks and SUVs would be treated separately. “Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.”
In order to be eligible for the voucher, the vehicle turned in must have been titled in the buyer’s name for at least one year, and be in working condition.
Motor Trend reports, “The bill now moves to the Senate, where it will likely face some obstacles. Lawmakers have debated whether the vouchers should used to purchase American cars only. Others believe provisions for used cars should be included in the legislation. But the pressure is building to pass some form of the present bill. President Obama has come out in favor of the legislation.”
The Detroit News adds, “Automakers, car dealers, business group and Michigan and Ohio lawmakers had long sought passage of the legislation, which they call crucial to boosting sales that have dropped by more than 40 percent amid deep recession.”
Similar legislation has boosted auto sales in other countries, providing automakers there with a cushion against the effect of the current recession.
The legislation isn’t aimed only at boosting auto sales, however. It also seeks to cut pollution by pulling high-emissions cars off the road, and cut America’s dependence on foreign oil by reducing demand for gasoline. To that end, USA Today notes, the dealer who accepts your trade-in must ensure that “The engine, transmission and some other parts must be destroyed so they can’t be reused. The idea is to cull fuel-thirsty, polluting drivetrains. Operators can resell other parts, however.”
And classic car lovers who worry about the vintage steel the plan could kill can relax. Jalopnik notes, “Many car enthusiasts fearful someone will trade in a rare classic will applaud the section limiting the cars to those produced in model year 1985 or after. Of course, this wasn’t done for the sake of car fans. They can’t easily determine the combined fuel economy of vehicles before the date because the EPA didn’t track this data.”
If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.
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