Q&A: How the 'cash-for-clunker' plan would work

[DainBramaged]

House Democrats and the Obama administration have agreed on a compromise for a so-called cash-for-clunkers bill.
Similar to European programs, the legislation — also called "fleet modernization" or "scrappage" — would provide federal vouchers of up to $4,500 for people to trade in their vehicles for new ones that get better mileage.


CHART: Summary of cash-for-clunkers agreement

The European programs are expected to result in 400,000 to 500,000 more new vehicle sales this year than otherwise would be the case. Backers say a U.S. version could add 1 million sales at a time Chrysler is in bankruptcy court and General Motors is fighting to stay out. Both are operating on government loans.

Talk of the vouchers has kept some would-be new car and truck buyers on the sidelines, waiting to see whether they'd qualify for government help. So, for the moment, the idea is hurting sales. Based on interviews with lobbyists and congressional offices, how it might work:

http://www.usatoday.com/money/autos/2009-05-11-chrysler-gm-cash-clunkers_N.htm#chart

http://www.usatoday.com/money/autos/2009-05-11-chrysler-gm-cash-clunkers_N.htm
PLEASE click on the link and READ the article.

1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.

2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500.

[sinkingfeeling]

1. It's going to be hard to find something I want that gets at least 4 MPG above what I already have.

Both my 1991 Subaru wagon and my 1999 Saturn average above 36 MPG.

[DainBramaged]

2. Combined mileage? NOT highway, combined

www.fueleconomy.gov

Go there and find your combined mileage.

[sinkingfeeling]

3. Both are manual transmissions. My Sabaru gets about 38 MPG on

the highway and around 32 in town. The Saturn is awesome on the highway at 40 MPG and in town, I drive for a month at a time on a tank (About 10 gallons) of gas. Anybody with a manual who understands gears can get much better mileage than someone with an automatic transmission.

Your link has one Sabaru like mine with an AVE. of 29 MPG and 9 Saturns with an AVE. of 34.2 MPG. I say mine gets better mileage.

[DainBramaged]

7. It's NOT what YOU get it's what the the GOVERNMENT lists on thier site

do you just want to get into some kind of pissing contest??? jesus

[Hoopla Phil]

5. Went there and found a problem. What if your vehicle is not listed?

I have an 03 Excursion that never had a factory rated MPG. It is also not on that link. So I have one of the worst gas suckers on the road and cannot participate in the program?!

[DainBramaged]

8. Call Presidnt Obama and ask him

I am not the Shell answer man, I simply posted a link for people to read.

[Warpy]

4. It shouldn't have to be a NEW car, that's the basic flaw here

The credit should also apply to a used car with decent MPG.

Perhaps it should be modified to $2250/$1750 for the same mileage drop on a used car.

Insisting only on the purchase of a new car might be peachy for the car companies, and that's actually a good thing, but it won't do much for the people who really need to get gas guzzling clunkers off the road, people who are too poor to buy new cars.

[Statistical]

6. It is 100% for the auto companies.

A mini (per car) bailout.

Also is the used trade-in car destroyed?
If not wouldn't it just get sold to someone else?

[DainBramaged]

9. Ya ya ya ya fine, call your Congresscritter and bitch

[Javaman]

10. Wooo hoo! I qualify! Now, isn't there another rebate for buying a hybrid as well? nt

[SoCalDem]

11. It might work if two letters were added..

"er"...as is newER cars.. Most people driving "clunkers" would need a MUCH bigger voucher to EVER buy a NEW car..

This is just a little bon mot to people who were going to buy a new car anyway..

[taterguy]

12. When will there be a "Cash for Bad Music" program?

Trade all your crap CDs in for a voucher to buy CDs from good musicians.

Seems like this is just a way of subsidizing automobile companies.

Fine.

But why single out that field?