Cash for Clunkers
The US Government apparently wants to help US citizens purchase a new car. The US House of Representatives recently passed the so-called “Cash for Clunkers” bill which provides money for US citizens to replace their gas guzzling cars with more fuel-efficient automobiles. The plan is to offer vouchers to give consumers up to $4500 in savings on our new car purchase, as well as various credits for trucks. The U.S. Senate is expected to debate the bill soon.
The House version of the bill has the following requirements:
The car that you want to trade in must get no more than 18 miles per gallon in the city and highway combined. The new car has to get a minimum of 22 miles per gallon in the city and highway combined. Your trade-in vehicle must be insured and registered under your name. It must have been in use for these one-year. The car you purchase must cost no more than $45,000.
Unfortunately there are some limitations. Cars that haven’t been insured for the past year or are not eligible to be traded in for vouchers. Cars that are over 25 years old are not eligible to be traded in for vouchers. Eligibility requirements vary for work trucks and light duty trucks.
Criticism of the bill includes the idea that it is not environmentally friendly enough.
Up to one million new car purchases could be generated by the program which would last about a year. Some are predicting that the program could start in October 2009.