Cash For Clunkers Bill Passes Senate
Late yesterday, the U.S. Senate passed a bill including “Cash for Clunkers” legislation that offers up to $4,500 in cash vouchers to qualifying new-car buyers.
Similar bills have passed in Europe and spurred car sales soon after passing. This U.S. version has been watered down to include only $1 billion in funding instead of the original $4 billion. That means after the bill goes into effect — likely in August — the funding will only last until Oct. 1.
We will have much more on the bill later today, but a brief synopsis is below.
Cars
Passenger cars from the 1984 model year or later with a combined mpg rating of 18 or less are eligible. Owners could get a $3,500 voucher if they trade for a new car rated at least 4 mpg higher or $4,500 if they buy a car that gets 10 mpg more. The traded-in vehicle must be in working condition and owned by the recipient for at least a year.
SUVs, Pickups, Minivans
Vehicles from the 1984 model year or later that get 18 mpg or less combined mpg could earn a voucher for $3,500 if the new SUV, truck or minivan gets at least 2 mpg more than the old vehicle. Buyers can earn a $4,500 voucher if the new truck or SUV gets at least 5 mpg more.
Cash-for-clunkers bill passes, offers up to $4,500 for a new car (USA Today)
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voucher? what does that mean?
Is it applied to the purchase of the new vehicle or does the person get it AFTER the purchase? Or is it a tax credit?
ok, after reading the link it says that it would be sent directly to the dealer and applied toward the purchase of the vehicle like cash down or a rebate.
But if they make it retroactive, how would that work then for people that have bought within the last couple of months?
Seems like it would be easier to do a tax credit kind of thing instead.
What happens if you trade a truck for a car?? $3500? $4500? Not eligible???
I don't qualify because my car already gets good gas mileage. My dad swears by the car buying process here: http://excarsalesman.typepad.com/. It is kind of similar.
I haven't tried it yet, but I might because it looks good.
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for lower MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate. The demand will increase prices and you'll get a voucher from increased prices. I'm certain some markets you'll come out even as if they never offered this voucher. It is poorly written legislation.
More bills treating responsible and intelligent people unfairly and awarding irresponsible and stupids.
So if I'm still lugging around my '85 v8 Ford Bronco that gets 10/11/12 (city/combined/highway), I can buy the 500-hp Porsche Cayenne Turbo S that gets 12/14/19 and get $4500 to the purchase of my new gas hogging performance SUV.
F-in' unbelievable. Great way to be environmentally conscious.
$3500, my bad.
If you're lugging around a '85 V8 clunker, chances are, you not in the market for a 500+hp Cayenne Turbo unless you hit the lotto. The rich do not cruise around in clunkers and if they do, it's because that's what they want/need for those clandestine moments.
I'm not LITERALLY saying someone owning a Bronco would go out and buy a Cayenne because of this legislation, I'm saying that there's ALREADY a way to circumvent the purpose of it.
I DO realize that there's few people out there going to trade in their $50 car for a $70000+ one.
$45,000 is max price of new car.