House Passes ‘Cash for Clunkers’ Bill
If you’ve got an old junker in your front yard that is more habitat for cats than transportation then this deal is for you.
In an effort to boost auto sales, the House passed a bill in hopes of increasing car sales of vehicles that get better gas mileage than what you presently own.
Under the House bill, car owners could get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car were 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.
Owners of sport-utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.
This yearlong vehicle program is expected to cost the taxpayers $4 billion dollars.