Skip to Content

REPORT: Impact of Cash for Clunkers might not be so hot; charities insisted on 18 mpg limit

With the official kick-off date for the Cash For Clunkers program CARS just over a week away, people are already saying it's really too little, too short. Last week, Auto Alliance president Dave McCurdy said that Congress could expand the program, and now some economists interviewed by Reuters are predicting that the overall effect on the economy (and, therefore, on the environment as well) will not be very large. A senior economist at Wachovia told Reuters that, "It's a very small number of people that this plan will end up helping."

One reason that the plan won't have as big an impact as it could is that people can only get a rebate for turning in a car that is, at most, 18 mpg. That's always seemed like an arbitrary and low number (a sliding scale, where the new car needs to be X mpg better than the clunker is a better idea), and a little tidbit from NPR reveals why: one of the reasons that 18 mpg was set as the upper limit in the CARS bill was that charitable organizations requested it, since they were worried that a higher limit would negatively effect vehicle donations.

[Source: Reuters, NPR]

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.



Featured Galleries

  • 1 Liter Racing League
  • Suzuki Alto in Global Green Challenge
  • Proterra Electric Bus
  • Local Motors Rally Fighter
  • 1916 Woods Dual Power Model 44 Coupe
  • Audi Avatar
  • Global Green Challenge Tesla Roadster goes 313 miles
  • Meyers Motors NMG
  • Cozmo NEV
  • Tokyo 2009: Suzuki Swift PHEV
  • Tokyo 2009: Suzuki SX4-FCV
  • Honda mobility devices

Categories


Autoblog

Daily Finance

Download Squad

Engadget

Joystiq

Autoblog Spanish

Switched.com

FanHouse

Asylum