'Cash for Clunkers'

[FishingBuds]

Senate Poised to Pass 'Cash for Clunkers' Bill

Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., introduced an amendment Tuesday that would set up a program that allows consumers with older, less fuel efficient vehicles to trade in their "clunker" for a voucher worth up to $4,500 toward the purchase of a new car.

Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., introduced an amendment Tuesday that would set up a program that allows consumers with older, less fuel efficient vehicles to trade in their "clunker" for a voucher worth up to $4,500 toward the purchase of a new car that must get at least 22 miles per gallon or an SUV or pickup that gets at least 18 mpg -- clearly a focus on U.S. manufacturers.

The one-year program is expected to help sell 1 million vehicles, according to Stabenow and Brownback.

The definition of "clunker" is a vehicle that gets 18 mpg or less, and the voucher size varies. Owners who purchase a new passenger car that gets at least 4 mpg higher than their old "clunker" get a $3,500 voucher. If the mileage difference is more than 10 mpg, the consumer gets the full $4,500.

Buyers of small trucks and SUV's fare better. If the new vehicle gets at least 2 mpg more than the "clunker," a $3,500 voucher is issued; for new trucks or SUV's getting more than 2 mpg, the new car owner gets $4,500.

[Fishing Rhino]

I wonder if the bill has a provision that prevents folks from buying a clunker for a few hundred dollars, that they can trade in and qualify to get the voucher worth thousands.

Otherwise, I can see a lot of cars that are currently sitting on cement blocks vanishing, if this bill passes.

[SirSnookalot]

I would think it would be up to the dealers discretion on what they take in for trade, the object is to sell the trade in as well, not scrap it out.

[CFFF 1.5]

It is not a trade in and it is government funded. All cars/trucks that get the voucher have to have the engine and transmission completely destroyed.

[tyrius.]

I would think it would be up to the dealers discretion on what they take in for trade, the object is to sell the trade in as well, not scrap it out.

Actually, the object is to scrap the vehicle that is "traded in".  These aren't trade ins where the dealer gets to sell the car.  The dealer accepts the clunker, sends the car to the scrap heap (at least the engine and transmission), and gets money from the gov't.  The person trading in the car only gets what the voucher is (they don't get a trade in value).