The White House has announced that President Obama will sign the recently passed ‘cash for clunkers’ legislation later today, with the program set to take effect in 30 days. The cash for clunkers program is intended to jump start new vehicle sales and also promote a cleaner national fleet.
President Obama will sign the cash for clunkers bill – which will consumers up to $4,500 towards the purchase of a new vehicle – at 4:30pm ET in the Oval Office, according to Automotive News.
Although the cash for clunkers bill will soon become law, the National Automobile Dealers Association is urging dealers to wait to sign up for the program. Federal rules for the program won’t be set until late next month.
Under the program, $1 billion will be set aside to encourage the purchase of new, fuel efficient vehicles. The program, which is set to expire on November 1, is expected to generate 250,000 new car sales. In Germany, a similar program helped boost May sales by 40 percent.
06/24, 4:41 PM
posted by:
gta89mike
A “similar” program in Europe. Not the worthless law the US program ended up being.
06/24, 4:44 PM
posted by:
bigs4610
“The program, which is set to expire on November 1, is expected to generate 250,000 new car sales”
more like 250,000 hopes and dreams. and 0 new car sales
06/24, 4:44 PM
posted by:
mayer_ray_nagin
this bill is worthless, but thank god for the magic money tree!
06/24, 4:48 PM
posted by:
JakeK66
Sorry, LLN had a typo, they meant to say that they expect to generate “$250,000″ in new car sales.
06/24, 5:53 PM
posted by:
mayer_ray_nagin
Actually it is not expected to generate 250k new sales. The market estimates 70k to 100k. The other 150k would have been sold anyway but the people will get $4k each from Uncle Sugar and his Magic Money Tree.
I swear the government is retarded. Freakin retarded.
06/24, 8:17 PM
posted by:
Flippo789
Why is it going to expire on November 1? They are just giving this program 3 months to work? That seems a little short to me…..especially when the economy is still down and $4,500 off doesn’t make $20,000 seem much better when you are just struggling to get by.
06/25, 8:05 AM
posted by:
MercMark
Actually LLN typo was meant to say “2 to 5 new car sales”
06/25, 10:58 AM
posted by:
injunraiv
This law is worthless – the vehicles have no inherent trade in value because they have to be scrapped. How many people do you know who drive worthless vehicles will want to buy a new vehicle? I’m thinking this will generate maybe 5 sales nationwide…
06/25, 11:24 AM
posted by:
karenc
Cash for clunkers will hurt car donations to charities because the amount of the voucher is so much greater than the tax deduction. A simple way to boost car sales would have been to just go back to allowing people to take the blue book value of their car as the tax deduction for donating it to charity. Most cars that are donated to charity are recycled. Those that aren’t have to pass inspection before the car can be sold or given to the public. The result is less polluting vehicles on the road.
Karen Campese, CEO
Cars4Charities
http://www.cars4charities.org