Washington, DC – Congress is mulling a proposal to pay people to get rid of those old gas guzzlers sitting in their driveways.
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Under legislation introduced in both the House and Senate and called the “Cash for Clunkers” program, drivers could get vouchers of up to $4,500 when they turn in their old fuel-inefficient vehicles for scrapping and buy vehicles that get good gas mileage.
People could also turn in their old cars for vouchers that could be used to ride public buses and trains.
The bill, said Sen. Dianne Feinstein, D-Calif., “would be an important part of helping getting America’s struggling automobile industry back on its feet, and help consumers who are concerned about covering the cost of buying a more fuel-efficient vehicle.”
Taking gas guzzlers off the road, added Sen. Susan Collins, R-Maine, a co-sponsor, “would reduce our dependence on foreign oil, decrease greenhouse gas emissions and stimulate the economy.”
The bill envisions the program operating for four years and encouraging the retirement of up to one million vehicles a year, saving between 40,000 and 80,000 barrels of motor fuel a day by the end of the fourth year.
Drivers would be eligible for reimbursement for purchase of a new or used vehicle 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 model year 2004 or later.
The vehicles turned in must be drivable, registered in the United States and have a when-new fuel economy rating of less than 18 miles per gallon.
In the first year of the program, a person trading in a vehicle that is model year 2002 and later would be eligible to receive $4,500 for purchase of a new vehicle, $3,000 for purchase of a used vehicle or $3,000 for transit fare credit.
For model year vehicles 1999 to 2001, drivers would get $3,000 for the purchase of a new vehicle. Those who trade in vehicles that came out in 1998 or before could get a credit of $2,000 for a new vehicle.
“This is an even better trade-in offer than they could get from any car dealership,” said Sen. Charles Schumer, D-N.Y., also a co-sponsor.
A person could obtain no more than one voucher in any three-year period. Dealers and scrap recycling companies could also get payments of $50 per vehicle. Initial estimates set the cost of the program between $1 billion and $2 billion a year.
what else will they spend “our” money on
First good stimulus idea I have heard yet – however if you have a pre-1998 vehicle that runs well – the math doesn’t work to break even on fuel costs.
If the car is a near junker it would work if the rebate amount increased.
Brainless Democrats at their best! If these vehicles are really better and more economical, why not let the FREE MARKET get them onto the roads? Why does the government need to “push it”? What a bunch of morons.
I have a 74 Dodge Dart. Do you think I could get $2000 for it??
If they want to stop the dependence on foreign oil, they should put their money where their mouth is and drill here & drill NOW!!
My van 85 crys I got it for 300 how much will they give me
since when is wasting tax–payer dollars constitutional?????????
Its a good way to stimulate the economy. It would encourage people to buy new cars.
Hey i should tell my father to keep his 93 marquies! it’ll be worth 2000 soon.
Would some liberal environmentalist out there please explain to me how trading in a gasoline-powered vehicle for an electric car will supposedly help the environment and fight global warming by reducing greenhouse gasses? Electric cars must be recharged — and if this is done by plugging it in, you are increasing your electricity consumption greatly. Last time I looked, electricity does not occur naturally in nature but is produced in power plants — and the vast majority of US power plants either burn coal or oil (both of them fossil fuels that increase greenhouse gasses). So for every meansure of carbon you do not put into the environment by buring gasoline in a conventional car, you are putting in a measure of carbon through increased electricity generation to power electric cars — that is, unless you generate your electricity via nuclear power plants — oh, but I forgot, nukeplants are even more dangerous, even though exactly zero people were killed in the supposed “worst ever” US nuclear power accident, Three Mile Island, which the wackos describe in the same kind of end-of-the-world terms they used to describe the Chernobyl accident in Communist Russia (where the plant was owned by the government, and thus not very will regulated by that same government, versus the privately owned TMI).
They are not spending their own money.
They have a lot of OUR money and they have nothing better to do than look for gimmicks where to spend it.
If they thin bike lanes are so great why not force every American to sell their car and give every American $ dollars to purchase a bike?
the ones most upset are going to be the Arabs.
Less fuel consumption = Less money for terrorism
#7 and # 8: I’ll buy your old cars and make a fortune on the rebates
So we can expect junkyards to turn into used car lots courtesy of Uncle Sam. Gevaldig!
this is a nonsense
dealers are going to have ppl tied with the vouchers
1)car prices are going to increase
2) minimmum price for old cars is going to be $ 2000
iow ,poor ppl loose, buyers loose,everyone loose (or tax money is here) only good for new car dealers