In an effort to rid America’s roads of older gas-guzzling vehicles, Congress is considering a new plan that would offer drivers cash incentives to trade in fuel-inefficient vehicles for much thriftier rides. Dubbed “Cash for Clunkers”, the new bill was introduced in the House and Senate on Wednesday.
Under the bill, drivers would be eligible for up to $4,500 in incentives to be used towards the purchase of a new or used vehicle. In addition to cleaning up America’s roads, the bill is also seen as a way to jump start the struggling economy.
In order to qualify for the program, drivers would have to own a registered and running vehicle, with an as-new fuel economy rating of 18 mpg or less. Incentives would be based on the year of the car, with 2002 and newer vehicles receiving the full $4,500. Vehicles with model years between 1999 and 2001 would be eligible for $3,000, while 1998 and older model year vehicles would receive $2,000.
In order to ensure old gas guzzlers simply aren’t traded in on new gas guzzlers, purchased vehicles would have to have fuel economy ratings at least 25 percent better than the federal targets for that class, according to The Detroit News. Purchased vehicles could be no older than the 2004 model year, with a price cap set at $45,000.
The bill – which would cost between $1 billion and $2 billion per year — calls for a four year operating period, with the hopes of removing 1 million fuel-inefficient vehicles from America’s road.
However, the bill is not without opposition. Because the program would destroy any vehicles turned in, some industry experts have spoken out about the “Cash for Clunkers” program. The biggest concern is that the program will decimate the heart of the used car market that so many lower- and middle-income families depend on.



01/15, 12:02 PM
posted by:
mulletmaster
Yeah this sounds like a great idea, sell us your car you probably have paid for so we can give you a credit to finance a newer car. I thought the gov told us the credit market is tight and consumers need to get out of debt? If they had half a brain, which being politicians they don’t, they could make a gov pull a part junk yard to try and minimize the tax payers cost.
01/15, 12:05 PM
posted by:
sharpie
Ok, is Congress going to pay for the crushing of these old clunkers then or will they be allowed to be resold once more. Can the same old clunker be used for more than once by different owner to get the incentive? I have my reserve on this. I think it may lead to huge waste of resources.
Gas guzzlers may be using more gas (i.e. resources), but building a new car also requires resources. But it is ok in the name of stimulating the economy. This bill is more about stimulating the financial economy. It is just a pretty excuse to say they are getting rid of gas guzzlers / old clunkers while getting people to spend money on another car, which is only the second most expensive item after the house.
01/15, 12:07 PM
posted by:
howsmydriving
I support anything that will get POS’s off the road. Long overdue IMO.
01/15, 12:08 PM
posted by:
mayer_ray_nagin
If a person got married in, say, 2003 and the wife turned out to be a gassy clunker, could I unload her on the federal government and get $4,500 cash for her so that I could buy more efficient newer models from time to time?
I do not care if it decimates the used wife market that lower and middle income families depend on.
01/15, 12:12 PM
posted by:
swamprat
The United States is running a 1.2 Trillion dollar deficit and congress wants to buy cars??
I think that these vermin need to be sent to the gas chamber.
01/15, 12:18 PM
posted by:
RaineMan
Now if they really wanted to make a difference they would reverse the dollar amounts. Pay more money for older vehicles. I can’t tell you how many poorly maintained ol’ gas guzzling beaters I see chugging around town every day. Not only do these vehicles get bad mileage… but they pollute like no tomorrow and are not subject to emissions testing in my state. They are also typically owned by low-income individuals who would really like to spend $5000 on a newer car… but just can’t afford to do so.
So… instead of just getting rid of SUVs and trucks the revisions would make the positive effects 3-fold. Get gas guzzlers off the road, help reduce pollution, and help low income individuals have a reliable ride to work. Win-win-win.
Now why did I have to think of that?
01/15, 12:20 PM
posted by:
Lariat Luxury Locomotive Liner No.3
@mayer_ray_nagin, you’ll need a helluva lot more subsidy than $4,500!
01/15, 12:24 PM
posted by:
Bankruptcy2009
How about introducing a Bill call. “Cash for Chevy and other GM Junk” rid America of those unbelivable eye sores altogether. And then use that cash as a down payment on a real car a Ford Motor Company Car or truck. There now your talkin!
01/15, 12:24 PM
posted by:
mayer_ray_nagin
I don’t know, LLL3, at $4,500 she costs just a little more per pound than ground beef so that is about an even trade, plus she becomes the government’s burden. Hell, the government is buying all the subprime debt so why not buy some subprime wives too?
01/15, 12:48 PM
posted by:
Impulsive
‘mayer’, love it.
01/15, 12:49 PM
posted by:
anti-believer
SHARPIE….. u need how to read.
The clunkers would be crushed/destroyed not resold, ya dummy.
01/15, 1:18 PM
posted by:
trantz
Use the full sized gas guzzlers like the Expedition pictured and refurbish them for homes for the homeless
Cash for Clunkers and Homes for Hobos.
01/15, 1:36 PM
posted by:
johnnycanuck
Gawd I love Excursions, the Klingon Battle Cruisers of the SUV world.
01/15, 1:42 PM
posted by:
Nr9
the production of new cars does more environmental damage than the use of the old clunkers ever will. this plan is retarded.
01/15, 2:03 PM
posted by:
Thunder Chicken
As Ive said on the many forums I’ve seen people panicking about this bill:
The high scrap prices of the past summer did far more damage to the “old car” hobby than any “cash for clunkers” program ever could. Cash for Clunkers pretty much only targets those who were going to buy a new one anyway but could now get one cheaper. High scrap prices targeted every old vehicle lying about in somebody’s yard, and every obscure car taking up space at a junkyard. Junkyards were actually paying for old wrecks instead of charging people to dispose of them, and everything that couldn’t be parted quickly (meaning anything older than a few years) was crushed and melted down into Chinese Chery cars.
01/15, 2:13 PM
posted by:
idrinorbarsaku
this bullsh!t is just a business plan! its funny how they give you the full credit for 2002 and newer cars but get less when you have a older vehicle! you should be getting less for a newer car and more for an older car. i bet they take these cars since they are newer and sell them to foreign companies or auction them somewhere. if this really happens, were gonna trade in our POS 2005 buick and will prolly get an infiniti or other jap car since their pretty much the ones who have that much better mpg to fit this need for the 4500
01/15, 2:19 PM
posted by:
idrinorbarsaku
it is not believable that they would destroy cars that are as new as 2002 and even newer! common sense states that they are really fncking stupid if they destroy them and not sell them to other markets. where is the proof that they really would destroy them and not try to sell them to make a quick buck?
01/15, 2:38 PM
posted by:
MercMark
This is so stupid it hurts.
Someone needs to tell congress to quit spending money it doesn’t have on programs nobody needs!
Idiots. Just make hybrid/CNG/electric cars cheaper if you want fuel efficient cars on the road.
At least then the taxpayers money might help the taxpayer.
01/15, 2:43 PM
posted by:
travis0017
Wow, great idea. Sell your gas guzzler so you don’t guzzle gas…but the person who buys it will.
01/15, 2:46 PM
posted by:
mayer_ray_nagin
Will the government put my wife thru a crusher …….. PLEASE!
01/15, 3:25 PM
posted by:
mulletmaster
Travis, did you read the entire article where it states the traded in cars are DESTROYED, that means they are never driven again.
01/15, 3:57 PM
posted by:
t-ak-box
Seems like a great idea, especially to anyone who interested in a New car at this time. I wonder if they will also limit what car Companies you can purchase from. I would think they would try to sway buyers to the Domestic Brands to help their sells.
01/15, 4:16 PM
posted by:
jayjc08
I’m wondering what they do with the vehicles after you sell them to the government.
What I mean is, I’m interested if this will generate any revenue for the government. If this is going to cost them more than it will save them, I’d vote no. Why increase government spending when the economies going down the drain, and THEN give them incentive to get people into more debt? Debt is the reason why we can’t get out of this hole in the first place.
They should limit them to domestic auto manufacturers. Not to be patriotic, but this is to help support our economy.
01/15, 4:16 PM
posted by:
tripleonefive
trantz
Its not an Expedition its an Excursion..oh wait its a Canyonero Can you name the car with a four-wheel drive / Smells like a steak and seats thirty-five? / Canyonero!
01/15, 4:25 PM
posted by:
jayjc08
Oh, and I know they crush them… I was wondering if they recycle them and make a profit, take them for parts and use them, or what…
01/15, 4:46 PM
posted by:
Borat
mulletmaster, a) don’t believe anything that you read & b) never, never believe anything that you read that government said it may or may not do.
01/15, 4:50 PM
posted by:
miket
Maybe they should offer the rebate to those people who buy cars that meet the new CAFE Std.’s avg or better. Thats what they really want.
Think about it…..The car company is now getting an incentive to meet future federal standards. The cars that get the 34MPG Avg (I think thats what it is) get a federal rebate of 4500 bucks. Then the car companys sell more of them, because of the discounted price. It will now make business sense to sell high MPG cars, at least until the gvt stops the checks.
Now there are more used cars on the market, effectivelly lowering the price overall (supply and demand) so people who have the really old clunkers can afford to get something better.
01/15, 5:58 PM
posted by:
hummah
That is the biggest pile of crap I’ve ever heard. As a nation aren’t we heavily influenced by Christian ideology? Reap what you sow bitches…
01/15, 8:35 PM
posted by:
iluvamcars
I’d say $8500 for a decent car.
01/16, 1:00 AM
posted by:
1c3d0g
LMAO @ swamprat…very well said, dude.
01/16, 10:49 AM
posted by:
yarddog82abn
Car dealer across the U.S. will make a killing…
02/11, 1:44 PM
posted by:
jackjimturkey
dumb