Obama, lawmakers reach agreement on Cash for Clunkers legislation
by Jeremy Korzeniewski on May 5th 2009 at 2:18PM 
The United States finally appears ready to implement a "Cash for Clunkers" program now that President Obama and the U.S. House of Representatives have come to an agreement on how the bill should be structured. It's not yet a done deal, though, as the legislation still needs to get through Congress.
Details remain sketchy for now, but under this proposed legislation, new car buyers trading in an older vehicle that averages 18 miles per gallon or less will qualify for a voucher that's worth $3,500 if the new car gets at least 22 mpg and up to $4,500 if the new car manages at least 10 mpg higher than the "clunker." Trucks would also qualify for a voucher of $3,500 if the new vehicle gets at least 2 mpg better than the old one or $4,500 if the new truck manages 5 mpg better than the trade-in.
Unlike some previous proposals, both foreign and U.S.-made models would qualify for the program. It's not yet clear how the bill would be funded, but it would reportedly be available for a full year and would help purchase up to one million total new vehicles.
[Source: Detroit Free Press | Photo: Tommy Draper]
Reader Comments (Page 1 of 2)
Throwback 2:37PM (5/05/2009)
So which EPA mileage standard will they use? The old (pre 2008) or the current one?
Reply
mapoftazifosho 2:45PM (5/05/2009)
http://www.fueleconomy.gov/
All of the vehicles going back to 1985 have been corrected for the testing change of 2007.
lowmilelude 2:39PM (5/05/2009)
So I'm assuming that if you own a clunker that gets more than 18mpg, you're SOL. Great. What a useful peice of legislation.
Reply
captainpease 2:49PM (5/05/2009)
There are other incentives in place for new hybrid purchases. Somewhere around $3500.
jzj 2:45PM (5/05/2009)
So, no carbon tax to finance necessary national grid improvements enabling renewable energy to power electric vehicles, but large gobs of yet-more debt money to further entrench ICE vehicles? Very disappointingly myopic.
Reply
Chris 3:23AM (5/06/2009)
Because electric vehicles are not the solution. The sooner you accept that, the better.
Randy C. 2:46PM (5/05/2009)
So how does this figure into electric car purchases? Technically an electric car gets infinite MPG. You put a gallon of gas in it then drive to the moon and back, and you will have a gallon of gas in it. Do I get both the $7500 EV credit plus this new one at $4500? That would be $12,000 of the price, electric is looking better.
Reply
omaticman 2:47PM (5/05/2009)
>> It's not yet clear how the bill would be funded
I'll answer that one for you. Straight outta my pocket. And yours, too, if you have a decent income.
Reply
Paul Sallmen 5:59PM (5/05/2009)
Here's an amusing (actually, not really, because it's so serious) video, showing how much money is being thrown around!
http://www.liveleak.com/view?i=ae1_1237918788
Throwback 7:16PM (5/05/2009)
Forget a decent income, do you have a job? If so you are officially rich.
polo 9:59PM (5/05/2009)
>>>I'll answer that one for you. Straight outta my pocket.
SOMEBODY CALL THE WWWWAAAAAAAAAAAAAAAAABULANCE!!
idiot. You don't get to pick and chose where your tax money goes. You do however get to vote for those will decide. The American people voted for those who will invest our tax wealth back into America, instead of transferring it to fat cats and corporate crooks in the form of ridiculous tax cuts. If you don't like it, L-E-A-V-E. Nobody likes a whiner.
David 2:37PM (5/08/2009)
It's going to be funded out of previously-approved stimulus funds. So no new deficits. If we are going to bail out the banks, we might as well bail out some people with old SUVs.
drvrone 2:58PM (5/05/2009)
A 15 year old chevy v6 sedan is still rated too high to qualify for this, how much more of a clunker can you have (that still drives).
If thats 18mpg city thats one thing, but below 18mpg avg (as rate when new) is ridiculous. What do they expect people to drive 25 year old cars? or something with a V8 ?
Reply
pixelnate 3:42PM (5/08/2009)
I agree. I am driving a 1995 V6 Camaro that originally got 20 mpg combined, but it sure doesn't now. And it smokes when I start it up. If that is the number being used to determine if I can get a rebate to replace that "clunker" then I am screwed and my clunker will be polluting for some time to come.
If they give me a rebate for something more efficient, though, I'll volunteer to scrap the thing myself. I would love to see that lump ground up for recycling. I hate that car, and it's worth nothing as a trade-in now. C'mon Obamessiah, give me some green so I can be more green.
Disclaimer: I am fully aware of how the runaway spending of this gov't is waaay out of control, but if the heads of the biggest banks in the world are getting gov't cheese, I want some too.
Collin 3:07PM (5/05/2009)
once again, there is zero motivation for me to get ride of my 16 year old civic that gets 45mpg.
Reply
Richard 6:08PM (5/05/2009)
I kinda think that was the point...
Terry 5:50AM (5/11/2009)
Under this program, you might be able to sell it, at a really good profit, to someone who is scrapping their 18 mpg suburban.
Tim 3:31PM (5/05/2009)
Questions:
Is the mileage calculated on gasoline or E-10 blend? E-10 has less energy and worse gas mileage than regular gas. What about high test and so on?
What about all those "working poor" who can't afford the new car payments? Perhaps "the gov't" should just go ahead and buy them all new cars. Then again, that's not fair either. OK, to be fair, "the gov't" should buy us ALL new cars. After all, that IS an "entitlement", right?
Why does it seem like the harder I work and the more successful I become the more I'm punished with an increasing tax rate? Why work so hard?
If we punish success with higher taxes while rewarding failure with "free stuff", do we get more or less success? Maybe this is why America is falling behind?
What happens when everyone is "entitled" and nobody is left to pay the taxes because the rich have all fled to another country with lower taxes and taken their jobs with them?
I know we have the freedom to fail, but do we have the right to force others to pay for our failure?
Reply
Time 3:44PM (5/05/2009)
When it talked about the MPG of the older car it only states for the full rebate you need under 17MPG if it gets higher then that you still get a rebate.
Reply
Rich 3:59PM (5/05/2009)
This seems to be geared toward owners of SUVs and pickup trucks who have not already dumped their vehicles.
If we could only have seen what the calculations were that went into this. They seem to be targeting specific vehicles rather than an across the board benefit.
And the new cars need to meet rather low mpg estimates. Obviously targeting certain new cars that need to be sold off the dealers lots.
And like a previous comment...what about the purchase of an electric car? Seems they don't want to promote the sale of electric vehicles (or H2 or natural gas)
Reply