Congress shot down a ‘Cash for Clunkers’ bill earlier this year – a program that would have given new car buyers cash rebates in exchange for trading in older, less fuel-efficient vehicles on newer, more efficient models – but a revised version of the bill appears to be gaining momentum on Capitol Hill.
One of the biggest criticisms of the last ‘Cash for Clunkers’ bill was that it favored the purchase of import vehicles. However, the new version of the bill alleviates that concern by offering an additional $1,000 rebate on vehicles assembled in the United States.
“It’s good for Detroit and good for America,” Rep. Betty Sutton, D-Ohio, told The Detroit News. “There is a sense of urgency with car sales slumping.”
Dubbed the Consumer Assistance to Recycle and Save bill, or CARS Act, the revised plan would offer up to $5,000 in rebates to owners willing to trade-in their old rides for a new set of wheels. To qualify, the ‘clunker’ must be at least eight-years old, the new vehicle must have a price tag under $35,000 and have better fuel economy numbers than the vehicle being traded in. According to Sutton, the new bill would cover about 60 percent of the vehicles on the road.
The CARS Act is also forward-thinking, with a $7,500 voucher set to take effect in 2010. That larger credit would be applicable to plug-in hybrid vehicles with a fuel economy rating of 100 mpg or better.
Barring any major setbacks, it sounds as if the CARS Act will be signed into law within the next few weeks.
