New Cash-for-Clunkers Bill Means it May be Time to Upgrade Your Old Wheels

Posted on June 25, 2009 in Business/Law, Consumer Goods

On June 18 a new bill sailed through Congress that will hopefully provide a much-needed boost to flagging automobile sales, and cut down on the number of gas-guzzling, smoke-belching old jalopies out on the highway.

The Cash-for-Clunkers Bill passed in the Senate 91-5 and is on its way to President Obama’s desk. The bill will offer a cash voucher worth up to $4,500 to any motorist willing to trade in their old, inefficient vehicle for a new car or truck. The bill is very popular with both domestic and international automakers. It is estimated that consumers will buy 150,000 new automobiles as a result of the incentive.

Said Michigan Democratic Senator Carl Levin, “This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries.”

If you have a 1984 or newer vehicle that gets less than 18 miles per gallon, you may be eligible for the Cash-for-Clunkers program. The car must have been registered and insured within the last year to prevent hucksters from fishing cars out of the scrap yard. If you purchase a new vehicle that gets an extra 4 miles per gallon, you will receive a $3,500 voucher. If the vehicle gets an additional 10 miles per gallon, you are eligible for the full $4,500.

Republican critics say the program is too expensive and will not accomplish enough to justify the costs. Some Democrats and environmentalists agree, saying that the mileage requirements don’t go far enough to make a significant impact on vehicle emissions.

The program is expected to kick into high gear as soon as August, 2009.