RSS Feed
Washington - 'Cash For Clunkers': Obama To Sign $4,500 New Car Credit |
|
| |
Text Size
|
President Barack Obama is expected to sign into law the "cash for clunkers" program, which was approved by the Senate on Thursday. For owners of low-mileage models such as the 1994 Ford Bronco, 1998 Nissan Pathfinder or the 1995 Chevrolet Blazer, the plan could give them a reason to visit their local car dealer during an economic downturn.
"I've been sitting on the fence for about a year," said Jim Seegraves, 44, of East Lansing, Mich., who has been looking to replace his 2000 GMC Sierra pickup truck. "This legislation will help me get over the hump and get the car that I want."
The bill provides $1 billion for the auto sales program from July through November and the Congressional Budget Office expects that with a total of $4 billion, about 1 million new vehicles could be purchased. The government is expected to implement the program by early August.
Here's how the plan works: 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 mpg. The voucher would grow to $4,500 if the new car's mileage was 10 mpg higher than the old vehicle. The mpg figures are listed on the car's window sticker.
Owners of sport utility vehicles, pickup trucks or minivans getting 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV got 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 was at least 5 mpg higher than the older vehicle.
The program was aimed at replacing older vehicles _ built in model year 1984 or later _ and would not make financial sense for someone owning a vehicle with a trade-in value greater than $3,500 or $4,500.
A 1998 Jeep Cherokee 4-wheel-drive with about 150,000 miles, for example, might only get $1,000 to $1,500 as a trade-in vehicle, according to estimates by Kelley Blue Book. Since the 1998 Cherokee gets about 17 mpg, an owner could parlay it into a new Ford Escape Hybrid _ 2009 versions get 28-to-32 mpg _ and maximize their trade-in to $4,500.
Dealers would apply the vouchers to the purchase or lease of a qualifying vehicle and ensure that the older vehicles are crushed or shredded. The new vehicle must have a manufacturer's suggested retail price of less than $45,000.
More of today's headlines
“Israel - German officer Wilhelm "Wilm" Hosenfeld saved two Jews from the Nazi Holocaust, including Wladyslaw Szpilman, whose story was the basis of the Oscar-winning...”
Israel - German Officer Who Saved 'The Pianist' Honored
New York, NY - Council Speaker: Default Penalties and Interest of ECB Violations to be Waived
Total28
Read Comments (28) — Post Yours »
1
Jun 19, 2009 at 10:28 AM Anonymous Says:
and how exactly is this helping thge recession?
3
Jun 19, 2009 at 10:13 AM Anonymous Says:
Can someone explain me why does such a spending bill have to do with the wars in iraq and afga. this bill is earmarked in the war bill
4
Jun 19, 2009 at 11:27 AM awacs Says:
“ and how exactly is this helping thge recession? ”
Well, it'll help the auto workers (large Obama campaign contributors) weather the recession. For the rest of us, well, you asked for him ...
5
Jun 19, 2009 at 11:26 AM Government is not the solution to our problems, Government IS our problem Says:
I cant wait for Election Day 09, 10, 11, 12 etc., so America could trade in the socialist lefty tipshim for some right thinking people. The results will be TAX RELIEF!
6
Jun 19, 2009 at 11:18 AM Symbolism Over Substance Says:
“ Can someone explain me why does such a spending bill have to do with the wars in iraq and afga. this bill is earmarked in the war bill ”
of course it is!! this is desite this chaleria running on a platform of no reckelss spending (see the TRILLIONS in debt we will be lucky to ever get out of) and no earmarks.
7
Jun 19, 2009 at 11:17 AM Symbolism Over Substance Says:
“ and how exactly is this helping thge recession? ”
it doesnt. this is another "feel good" way for the libs to feel good about themselves. Libs are full of Symbolism over Substance.
8
Jun 19, 2009 at 11:08 AM YitzchokM Says:
Although I agree, he's a moron, in order to get the rebate your car needs to be registered for at least a year.
There are MANY other things that make him a moron. I'll stick to that.
9
Jun 19, 2009 at 11:04 AM Anonymous Says:
“ Can someone explain me why does such a spending bill have to do with the wars in iraq and afga. this bill is earmarked in the war bill ”
so no one will read it and it will pass without questions being asked. nothing unusual for obama.
10
Jun 19, 2009 at 10:58 AM Anonymous Says:
“ Can someone explain me why does such a spending bill have to do with the wars in iraq and afga. this bill is earmarked in the war bill ”
As if everything else from coming from Washington does make sence?
11
Jun 19, 2009 at 10:57 AM Anonymous Says:
Cause the bill only covers owners for the past year. Registered in the same name.
12
Jun 19, 2009 at 10:50 AM Anonymous Says:
“ and how exactly is this helping thge recession? ”
Here's how it works:
You go to the local "automotive recycler" (a.k.a. junkyard) and buy a barely roadworthy wreck for $1500. You drive it for a few months and sell it back for $500. You then apply for your $4500 credit. A month later you repeat the process. And again. And again...
Stimulus!!!
13
Jun 19, 2009 at 12:08 PM Alan Says:
Plans like this car bait law are PR but exist because we conservatives haven't a clue,a plan, leadership and are letting racist BSers speak for us....it's time to turn the page from "nose and don'ts" to build the future.
14
Jun 19, 2009 at 01:43 PM i smell govt ripoff scams Says:
this is so ripe for car dealers / junk yard and "charities" to scam the tax payer!!
15
Jun 19, 2009 at 02:24 PM Gefilte Fish Says:
If the government is paying for these new cars let them at least demand you buy american, to stimulate OUR economy! no, that would upset our european "friends"...
16
Jun 19, 2009 at 03:40 PM Anonymous Says:
Garbage racism like you wrote has no place here - or anywhere.
17
Jun 19, 2009 at 03:40 PM Anonymous Says:
“ If the government is paying for these new cars let them at least demand you buy american, to stimulate OUR economy! no, that would upset our european "friends"... ”
Guees what? Obama WANTED a buy American only program and it was the REPUBLICANS who objected to it!
18
Jun 19, 2009 at 02:15 PM Anonymous Says:
this is a scaam proof program
you had to have owned the clunker for a year registered in your name prior to the bill taking effect.
the dealer will need to show that the car was dismanteled and junked or passed on to a 3rd world country and off the streets of the usa
19
Jun 19, 2009 at 04:48 PM Anonymous Says:
Stop the phony outrage.
Last I checked, the Congress has racked up well over a trillion dollars (that's a thousand billion), not including this latest $105 billion dollars, in debt on their silly occupations of an incorrigible Arab peoples.
I'd rather the government spend money to put people in fuel efficient cars, than spend money on policing a people who are intent on blowing up cars.
20
Jun 20, 2009 at 06:45 AM FAL Says:
The government has to make money on this somehow. I wonder if it will somehow be considered unearned income and have to be listed on next years tax return.
21
Jun 19, 2009 at 09:01 PM Anonymous Says:
“ If the government is paying for these new cars let them at least demand you buy american, to stimulate OUR economy! no, that would upset our european "friends"... ”
Don't be an idiot.
Would you like it if Europe passed a law making it far cheaper to buy local cars that Ford cars made over there?
22
Jun 19, 2009 at 08:59 PM Anonymous Says:
“ Guees what? Obama WANTED a buy American only program and it was the REPUBLICANS who objected to it! ”
LIES.
A Buy American only program would get rejected because it is against FREE TRADE AGREEMENTS.
23
Jun 19, 2009 at 08:57 PM Anonymous Says:
“ and how exactly is this helping thge recession? ”
Because rather than handing out $1500 dollar checks so that people can just put it in the bank, you get the credit it you buy a car, and that puts people to work.
It is a little bit of a shell game in that it also hurts future sales a bit. thats better than
NOBODY buying now though. it smooths out the sales.
24
Jun 20, 2009 at 10:15 PM Anonymous Says:
“ LIES.
A Buy American only program would get rejected because it is against FREE TRADE AGREEMENTS. ”
Feb 5, 2009: Dems in Congress gave in to h Republicans and diluted the "buy american" clauses of the stimulus plan. McCain even submitted an amendment (defeated) which would have COMPLETELY removed it. Try learning facts.
25
Jun 20, 2009 at 10:45 PM Anonymous Says:
“ Guees what? Obama WANTED a buy American only program and it was the REPUBLICANS who objected to it! ”
thats because that populist bill has no place in our economy, and would be a disaster that would have caused retaliation by other counties.
26
Jun 21, 2009 at 12:36 PM Government is not the solution to our problems, Government IS our problem Says Says:
“ Guees what? Obama WANTED a buy American only program and it was the REPUBLICANS who objected to it! ”
If, and I say IF, that is true it is only because there is hardly a difference between an American made car anymore and what is not. So many "American" made cars are not TRULY 100% American made and the "foreign" cars would be MADE here.
So let's see. According to FoxNews story in 12/08...
Honda, for example, has manufacturing plants in Marysville and East Liberty, Ohio, in Lincoln, Ala., and last year it opened a plant in Greensburg, Ind., that employs about 2,000 people. Honda manufacturing facilities employ about 14,000 people in the U.S.
Another Japanese giant, Toyota, produces its Camry, Camry Hybrid, Solara, Avalon and Venza models at its plant in Georgetown, Ky., where it employs about 7,000 people. Another 5,500 work at the company's plant in Freemont, Calif., a joint venture with GM, and 4,500 Americans work in its Princeton, Ind., facility.
Toyota will begin making its popular Prius hybrid in a plant under construction in Blue Springs, Miss., in late 2010, the company said. When the Mississippi plant is online, Toyota will have almost 21,000 employees in its U.S. manufacturing facilities.
According to a study released in September '08 by the Moore School of Business at the University of South Carolina, the BMW plant in Spartanburg, S.C., has pumped about $8.8 billion into the state's economy and created about 4.3 jobs statewide for every one job at BMW.
Mitsubishi, Mercedes-Benz, Subaru, Nissan and Hyundai also have U.S. plants that employ American autoworkers. Volkswagen and Kia will soon.
In 2000, about 50 percent of Toyota and Honda components were made in America. Now some foreign automakers are trying to raise their percentage of American-made components.
Honda has raised its American-made content in some vehicles to as high as 70 percent, said John Heitmann, a history professor at the University of Dayton who teaches classes about car history and culture.
Many of Government Motors Corp cars etc are built in Canada but you will only know which by looking at the VIN (sorry VIN, not that VIN!) number. A VIN beginning with "1", "4" or "5" identifies a U.S.-made vehicle; "'2:' identifies a Canadian-made vehicle.
Now just think of how many people are involved in the "foreign" car when you buy it in the USA. You have the dealerships that make money, the salespeople then make money, the service people make money, etc. People here are making money and they could then spend it. Alas, some people dont undersand or refuse to understand "trickle down economics" but that would be an example right there! Someone makes money so they spend it which in turn means others can spend it too!
27
Jun 21, 2009 at 12:40 PM Government is not the solution to our problems, Government IS our problem Says Says:
How come no one is mentioning that only 1/4 million of these "trade ins" will be available due to lack of money???
All this is typical symbolism over substance brought to you by the left.
This is all part of the socialist Obama's plan to kill everything good about the country!
How's your hope? How's your change??
28
Jun 30, 2009 at 11:14 AM Mike M Says:
“ Although I agree, he's a moron, in order to get the rebate your car needs to be registered for at least a year.
There are MANY other things that make him a moron. I'll stick to that. ”
I sapose you would rather have the brain surgin and all his little crooks that we just got out of office.
29
Jul 09, 2009 at 12:14 PM skunkdog Says:
None of this type of spending or involvement in wars in the middle east would make any sense if we stopped using so much oil to run our economy. We can move closer to work. We can ride bikes. We can take public transportation. We can refuse to buy any vehicle that gets less than 30 miles to the gallon. My point is that everyone is looking for who we should blame for the mess we are in. We should stop trying to figure out what the other guys shouldn't do and start doing the good things that we can do ourselves. Money moves the economy. Vote with your dollar.