Obama signs Cash-for-Clunkers bill into law, countdown to start begins
by Chris Shunk on Jun 26th 2009 at 8:01AM 
President Obama has taken pen to paper and signed off on Cash-for-Clunkers, a law that could help the auto industry shake its year-long funk. The Transportation Department now has 30 days to determine the rules and regulations for Cash-for-Clunkers, placing the start of the program at the end of July.
The law as it was signed will give the power to decide which vehicles will be eligible for the program to the dealers. The dealers will also be in charge of scrapping the older vehicles, which must be less than 25 years old to be eligible for federal funds. Clunker-eligible cars must be also owned for at least one year to qualify for the program. Those eligible for Cash-for-Clunkers will receive up to $4,500 towards the purchase of a new, more fuel efficient vehicle. To get the full $4,500, those new cars must be at least 10 mpg more fuel efficient than the older model they replace, and trucks must be 5 mpg more efficient. Among the details of the law still being worked out is a plan to ensure that dealers are, in fact, scrapping the vehicles and not reselling them.
[Source: Automotive News, sub. req'd | Photo by MANDEL NGAN/AFP/Getty]
Reader Comments (Page 1 of 1)
Spence 9:12AM (6/26/2009)
IF anyone at the Dept. of Transportation is listening, make this program more successful by allowing cars to qualify under the 18mpg cap with their lower official mpg rating, it other words, the "city" rating instead of "highway". A lot of cars get over 18mpg highway or combined, but well under in real world driving. My car would qualify under such a scheme (or an alternate scheme that takes mpg degradation over time into account, my actual mileage these days is closer to 15) but not under a combined mpg rule.
I'd love to be able to buy, say, a brand new Nissan Versa for $5500 bucks, or a Fit for around ten grand, thank you very much!
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Tim 11:00AM (6/26/2009)
This is about a Big Auto + Big Banking partnership using Big Gov't to redistribute taxpayer debt so that they can sell more new cars, make more loans and collect more interest.
It's called Crony Capitalism which is a pejorative term describing an allegedly capitalist economy in which success in business depends on close relationships between businesspeople and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth.
Crony capitalism is believed to arise when political cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals.
Progressives "greens" and NeoCons are just ignorant tools of the rich and well connected corporate oligarchy which controls the federal gov't to increase their wealth and power.
RJHD3 12:46PM (6/26/2009)
If I read the above right, I could trade in my 2006 Ford Mustang for a 2010 Fusion and it qualifies under the program. But they'd have to scrap the Mustang under this program? Ick.
I agree with the opponents of this bill...those that could use it won't qualify. It ought to work for trade in's on used cars that meet the criteria so those that could most use the financial help would get it....and it would get older, nastier cars off the road.
Better yet, why don't they start a trade in for all those ancient, nasty yellow school buses that bellow out black death?
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theviledrh 1:23PM (6/26/2009)
apparently the school bus lobby is not as persuasive as Detroit's
wonderif 1:49PM (6/26/2009)
You wouldn't want to do it if you can sell your Mustang more than $4500.
Joel 10:56AM (7/05/2009)
"Better yet, why don't they start a trade in for all those ancient, nasty yellow school buses that bellow out black death?"
Actually, If more high school kids actually rode the school bus, we could clean up a huge chunk of the problem.
Julius 3:01PM (6/26/2009)
Ultimately, I'd expect that the number of takers for this program to be extremely small.
First, they'd have to be driving an inefficient vehicle that's worth less than $4500. It has to be worth less that $4500, as the car is to be scrapped. Otherwise, they could sell it/trade it in and get more money.
Second, they'd have to be willing to buy a NEW vehicle - though chances are, anyone who has been driving around a sub-$4500 vehicle over the past year won't be looking to spend tens of thousands more on a new vehicle.
Third, anyone who would be trading-in a sub-$4500 vehicle still might have credit issues for buying a new car in this market anyway - and would probably be better served by buying from the used car market instead.
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Adam 4:25PM (6/26/2009)
I'm excited for this program, my first and only car ('89 BMW 525i) is on it's last legs, $4,500 toward a down payment on a new car is a huge help! But according to FuelEconomy.org, it gets 16 city and 21 highway, what would the official 'average' be? Would I even qualify in terms of minimum fuel economy ratings?
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GoodCheer 6:12PM (6/26/2009)
If you click on the word "Compare", you will see that your combined rating is 18. So you qualify (just).
contact 2:01PM (6/27/2009)
I like the idea that the dealers not get to say which vehicles qualify. I'm wanting to trade in my 19mpg combined vehicle for a 38mpg combined vehicle... I think I should qualify and my dealer agrees. I just hope they actually get some wiggle room with this as it's too restrictive to help most people.
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Tyler Durden 2:33PM (6/27/2009)
Help --- question:
If someone owns a VAN that qualifies for the program, can they purchase a CAR and still receive the rebate?
If possible, please provide link.
Thanks
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ken anderson 9:04PM (6/29/2009)
I have to agree with most of your readers. The people who have a clunker per say aare keeping or driving this car because that all they can aford to drive. Who will they be able to make the monthly car payments, after they receive their $4500 dollars. I think this is another one of the stupid stimulus bills being passed. How about us that are trying to get our newer gas guslers of the streets for a new gas saver. What about the people who have leased vehicles that are now not gualified for this program.. In all i think the program stinks and is not out there to help anyone.
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bobby b 4:31PM (6/30/2009)
I have a 1994 Suburban with 200,000 miles on it that I kept as an extra vehicle as my kids approached driving ages. I have two boys using the heck out of it right now, but moaning in pain whenever they contemplate filling the forty-eight-gallon gas tank. It gets between 8 and 15 mpg, depending on how heavy the foot feels that day.
I've wanted to get rid of it and buy a much newer small vehicle as a third family car - but it's incredibly safe for my kids, it's completely paid for, it hasn't been breaking down, it's great in the snow, we can carry big stuff when I need to, etc.
Sounds like this bill was written for me!
But, why? Why do I deserve this $5k gift? My kids will probably spend the same money on gas as before - they'll just triple their driving miles. Saving the environment? I'd have to drive this Suburban a heckuva lot more miles to make up for the energy and pollution costs of manufacturing yet another new automobile for the world, plus the net energy deficit resulting from wrecking a workable vehicle is significant.
Maybe I'm just being too noble. After all, we just raided everyone's pockets to send piles of gift-cash to the Friends of Obama all over the country, calling it Stimulus money or bailout money or . . . whatever. We all know dang well that that money won't stimulate anything except Democratic campaign coffers. So, I guess I'll just take my turn raiding my neighbors' pockets while I can. They'll probably get into mine again next week.
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Jim 5:57PM (7/04/2009)
There is the possibility of converting your suburban to CNG and get a home refueling system, cutting your fuel cost to 50 cents/gallon billed through your natural gas provider. Of course this doesn't address servicing or filling on trips over 100 miles or so.
GK 10:09PM (7/16/2009)
This program is supposed to be on a first-come first-serve basis. The way I see it, the day this program starts, I had better be at the dealer and ready to sign the papers to purchase a new vehicle. One dealer told me that they will 'send the paperwork in' and about 10 days later they will be told that they will either get the voucher or not.That does not make sense. I hope that they send info online and get an instant answer that they will get the money for my 'clunker'. This is starting to sound a lot like getting concert tickets online. Within minutes, SOLD OUT!!! Will this happen with this program? Many cars won't be eligible or simply not worth participating in the program,
but, from a sample of 2 dealers I stopped at, there are many in line.
No voucher - no new car for me.
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Tom Kasmer 11:15PM (7/16/2009)
I am the inventor of the Hydristor and I wanted to clear this point up. Whenever the motor has to accelerate so as to accelerate the car, half or more of the 'developed horsepower' is adding rotating kinetic energy to the overall flywheel effect (sum of all rotating parts) of the engine. Thus less than half accelerates the car. Any step change
transmission including automatics has the above condition. Also, the 'required horsepower' at the wheels during the instant of start is the same as for a bicycle or locomotive and therefore your car. ZERO since horsepower is the mathematical product of torque and speed and the starting wheel speed is ZERO; hence no power at the instant of start. An infinite seamless ratio changer like the Hydristor allows the engine to see almost no load at startup whereas any multi-speed manual or automatic
experiences the worst case of engine loading.
Downshifting a manual or automatic will slow the car but the energy is totally wasted and must be replenished by burning more fuel. The Hydristor can brake the car as strongly as needed to the point of sliding tires and put 95% of the kinetic energy in
pressure storage tanks for re-use. This means city mileage will be only a few percent
less than highway mileage. The hydristor selects a ratio that allows the engine to run at idle when cruising at highway speeds on level ground and quickly changes ratio while running up the enine speed for passing or hill climbing. At idle, most larger engines will produce enough power for level cruise while consuming about 1/3 the fuel . Hence 40 Mpg Expeditions and Hummers including diesel.
Another aspect of the Hydristor is acceleration. With large enough storage tank volume, one could theoretically pull up to a light, reach over and shut the engine off and accelerate just at wheelspin to 60 Mph at near '1g' of acceleration, reaching 60 in 3-4 seconds for 2WD and under 3 seconds for 4WD. Were not done. The engine average revolutions per mile are cut by 2/3 and half million mile engine lifetimes will become the norm. Friction brakes are rarely used meaning a brake overhaul will extend to 2-300,000 miles. Since the engine runs much less,, CO2 generation is cut by 3/4 on existing vehicles since the Hydristor is designed to be a 'one size fits all' with
specific adapters. Also, the scrapping of the vehicle is eliminated, saving huge amounts of 'recycling energy' and the owner keeps their 'paid for' car.
If all the vehicles in the USA were converted to Hydristor retrofit hybrid conversions,
the nation's use of oil for transportation would be cut in half. The substantial reduction in CO2 would be a turning point for Mankind and we could begin the rollback of global warming. In my opinion, the sum total of all efforts underway in the World are not going to save the day. You the reader can do a Google or Bing search of the word Hydristor and especially see the Hydristor website for the letter of endorsement by
Dr. Carl Stannard, Professor Emeritis in Physics sent to President Obama. This same letter has been sent to numerous politicians including Al Gore and nobody has ever
contacted me or Dr. Stannard. WHY? You the reader can help with this effort by presenting a copy of the Stannard letter to your representatives in government and asking for a specific response from them. I can be reached at 607-2068960 and my e-mail is tkasmer'at'yahoo.com. Im doing this for the kids and grandkids. I've been at it for 18 years on a 'starving artist' budget. Please help. Godspeed Tom Kasmer
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MARY 9:33AM (7/23/2009)
i own a 1984 Chevy Monte Carlo. Are ther incentives for vehicles 25 years old ?
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