REPORT: Congress members drafting cash-for-clunkers bill
Ohio Congresswoman Betty Sutton has introduced a new bill to provide a voucher of up to $5,000 in exchange for your clunker. To be eligible for the voucher, car buyers would have to purchase a new vehicle that is more fuel efficient than the car or truck it replaces. The trade-in also needs to be at least eight years old, while the replacement vehicle needs to sticker for less than $35,000.
The bill will include purchases of both foreign and domestic autos, but there is an incentive to buy vehicles assembled in North America. If the bill passes, foreign-made vehicles will receive a voucher of $4,000, while North American-made vehicles will be eligible for the entire $5,000.
Sutton is hailing her bill as a win for all, saying the legislation will "help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries." Not surprisingly, domestic automakers are smitten with the idea of vehicle vouchers. General Motors CEO Rick Wagoner said the legislation would be a "big help," while Ford called the idea a "win-win" for the auto industry and the environment. We're calling it a great way to get $5,000 off the price of a 29-mpg Chevrolet Camaro. Thanks for the tip, Vlad!
[Source: The Detroit News, Photo by tromasbronot | CC2.0]
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Reader Comments (Page 1 of 7)
dartingd 9:03AM (3/18/2009)
gives me even more reason to get a fiesta!
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Alan 12:43PM (3/18/2009)
Depends on the definition of American made. The Fiesta will be built in Mexico.
And the Camaro is built in Canada.
dartingd 12:44PM (3/18/2009)
true
Chris 2:04PM (3/18/2009)
North America is North America, my friends.
Alan 2:05PM (3/18/2009)
Sorry, it says that North American made cars get the full amount. So the Canadian built Camaro and Mexican built Fiesta would qualify. But I assume that the Australian built Pontiac G8 would not be.
nzo 9:08AM (3/18/2009)
So if I have 2 cars can I double my pleasure?
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dartingd 9:10AM (3/18/2009)
didn't think about that...I'm sure I could wrangle up another junker to take in, lol...I'm also sure they will be sure to make it one car per trade in...
Alex 9:18AM (3/18/2009)
I'm hoping they allow multiple cars. I have a few i'm willing to part with. I'm sure there will be some stipulation that you'll need to own the car for at least a year .
the_MVP_X 12:10PM (3/18/2009)
nahh, u have to buy 2 new cars to get 8000$ or 10000$
glitched 12:12PM (3/18/2009)
Probably has to have a title, not be salvaged, and registered for a year, my guess...
Silly Pickle 9:09AM (3/18/2009)
So would this mean that the mfg's wouldn't have to give any rebates then? So you're no further ahead in the end...back to paying full sticker on your purchase. Hmmmm...wonder how that would pan out.
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Jeff 9:50AM (3/18/2009)
Why do we need or insist on rebates? Oh yeah, to clear the lots of bunches of cars no one wants.
If a product-- car or otherwise-- represents a good value at list price, then it's worth paying list price. You're getting what you're paying for. Do your homework and be happy with your purchase. I'm not going to buy a car or anything else I know is a POS simply because of the rebate or sale price.
We lament the vast numbers of retail businesses that are closing their doors, yet we insist on squeezing every extra nickel out of them when we go to buy something. That's a mindset that should change, and really needs to change.
Kumar 11:55AM (3/18/2009)
I view rebates on cars as a hold over similar to keeping entirely too many cars on hand on a lot. Dealers want to screw over the impulsive buyers who want to drive a car off of the lot that day. For that, they get to pay more.
For the rest of us who window shop, the rebates level the playing field. Any more, when I test drive, I tell the salesperson up front why I'm there and how many months I am from a car purchase to quell any jackpot pipedreams.
Yes, it would be great if everyone priced cars like Apple priced iPhones, but what would we do without annoying greedy car salespeople?
Nick 9:09AM (3/18/2009)
I like this idea if there's a system in place for recycling as much of the clunker as possible. I think the car companies in general could reduce manufacturing costs if they spent a little time thinking about how to recycle old cars. Its a great incentive to buy a new one which could keep the profit cycle a little more regular.
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blckstrm 12:12PM (3/23/2009)
Don't worry you little head about the recycling thing. The US market is already a very efficient auto recycler. Europe has a lot of regulations requiring recycling, but the US market is an actual efficient market in that regard, and any "regulations" would just start messing things up.
So unless you're in favor of even MORE govenment waste, I'd just leave it alone to work efficiently all on its own.
Bren 9:13AM (3/18/2009)
My truck is only 6 years old. So could I buy a junker for $200 in order to use for the trade-in?
I would definitely do this if only I qualified.
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Rboyett 10:06AM (3/18/2009)
If this is like any of the clunker plans in the states (Texas has one) then you have to have owned the clunker for a specified period of time before you could trade it in.
That would keep people like you and I from buying a POS Olds and trading it in for a new Fusion.
Epyx 10:25AM (3/18/2009)
I don't know if a "period of ownership" clause really matter. Why should the government care if you do purchase a clunker for $200 just to trade it in for the rebate?
1. An old car is taken off the road
2. A new car is purchased
3. Commerce is taking place stimulating the economy
Still seems to meet the intent of the plan to me.
What guarantee is there that the clunker is recycled or destroyed and not just sold again?
8 year old cars are still good cars- that is my 2000! Plenty of cars from then are worth MORE than $5000 anyway.
Also, rebates can be taxed.
nardvark 9:12AM (3/18/2009)
Great, so now I'm paying for my neighbor's car, in addition to their mortgage, child's college education, their health care, the solar panels on their roof, and who knows what else. Hooray!
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John 9:25AM (3/18/2009)
Welcome to our wonderful new world of "change", comrade!