The idea of a “cash-for-clunkers” program has been floating around Washington for some time now, but Congressman John D. Dingell of Michigan may have penned the proposal that finally gets signed into law. Dingell’s plan would give buyers up to $4,500 towards the purchase of a new vehicle.
Dingell announced earlier on Tuesday that an agreement had finally been reached in the House of Representative. “Today’s announcement that my colleagues in the House of Representatives and I have struck an agreement on a vehicle fleet modernization program could not have come at a more opportune time,” Dingell said in a statement. “By stimulating consumer demand for new vehicles, this proposal will directly benefit domestic autoworkers and automotive manufacturers, which have arguably been hardest hit by the current economic downturn.”
However, Dingell’s plan seems to raise more questions than it answers. One of the sticking points of the cash-for-clunkers proposal is whether than program should apply to only vehicles built in North America or be open to all vehicles, regardless of point of origin. Dingell’s plan never directly addresses that issue, using language that could point in either direct. Some parts of the proposal simply say “new vehicles” while other specifically identify the domestic automakers.
Additionally, Dingell’s plan doesn’t seem to have any vehicle age requirements, save for the fourth category of “Work Trucks”, or vehicles weighing between 8,500 and 10,000 pounds.
At any rate, this is how the proposal breaks down:
Passenger vehicles
- In order to qualify, the old vehicle must average less than 18 mpg, per the new EPA ratings
- Qualifying new vehicles must achieve at least an EPA combined 22 mpg
- A $3,500 voucher will be given for new vehicles achieving at least 4 mpg better than the old vehicle
- A $4,500 voucher will be given for new vehicles that achieve at least 10 mpg better than the old vehicle
Small trucks and SUVs
- In order to qualify, the old vehicle must average less than 18 mpg, per the new EPA ratings
- A $3,500 voucher will be given for new vehicles achieving at least 2 mpg better than the old vehicle
- A $4,500 voucher will be given for new vehicles that achieve at least 5 mpg better than the old vehicle
Large light-duty trucks
- In order to qualify, the old vehicle must average less than 18 mpg, per the new EPA ratings
- The new vehicle must average 15 mpg or better
- A $3,500 voucher will be given for new vehicles achieving at least 1 mpg better than the old vehicle
- A $4,500 voucher will be given for new vehicles that achieve at least 2 mpg better than the old vehicle
