• May 5th 2009 at 2:27PM
  • 80
It appears that a U.S. "Cash for Clunkers" program is right around the corner now that President Obama and the U.S. House of Representatives have come to an agreement on how the bill should be structured. However, it's not a done-deal yet, as the legislation still needs to get through Congress.

Details remain sketchy for now, but under the 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 ten mpg higher than the "clunker."

Trucks would also qualify for a voucher of $3,500 if the new vehicle gets at least two mpg better than the old one or $4,500 if the new truck manages five 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 one full year and up to one million total new vehicles.

[Source: Detroit Free Press | Photo by Project 404, CC2.0]

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    • 1 Second Ago
      • 6 Years Ago
      How disappointing.

      Why the cave in for foreign products? Why not atleast offer more for someone who purchases North American / US made products, no matter what manufacture.

      Why are we not getting rid of the old smaller cars that have horrible emissions as well?
        • 6 Years Ago

        Toyotas, Hondas, Mazdas, Nissans, Hyundai that are made in US/Canada ARE North America made products.

        Like it or not, Mazda6 made in Michigan is a car Made in the USA in the same way as Chevy Camaro is Made in Canada. Or should Saturns be dismissed because some are made in Europe?
        • 6 Years Ago
        Yeah, I was hoping for something based on the age of your car. My 8 year old cavalier doesn't qualify (24mpg combined according to the new standards, 30 based on old).

        The credit would have probably put me over the top for buying a new car. Guess I'll keep driving it until it dies like I was planning on.
        • 6 Years Ago
        You can get rid of older smaller cars as well. And the EPA website has updated and created projected fuel economy standards for vehicles tested before the 2008 testing change.
        • 6 Years Ago
        You wanted that "buy American!" crap in there? Do you want this thing to turn into another Great Depression? We aren't the only ones in this mess you know. What do you think other countries are going to do when they see our new law that has our automakers doing better and their own suffering? They're going to do the same thing for their people. Now nobody overseas is buying "American" cars anymore. (Really, the ones sold over there were the only good "American" cars anyway.) Now all global trade is on the decline. The American companies that were getting by before on slow international sales and zero domestic sales now have zero sales everywhere.
        • 6 Years Ago

        The Astra is the only Saturn model that is NOT made in North America. The Aura, Outlook, and Sky are made in the USA while the VUE is made in Mexico.

        The Toyota, Honda, Mazda, Nissan, and Hyndai models you speak of wouldn't be the Toyota Prius, Yaris, Land Cruiser, 4-Runner, FJ Cruiser all Scions, most Lexus models, Honda Fit, S2000, Insight, Civic Hybrid, Mazda 3, 5, MX-5, RX-8, CX-7, and CX-9, Hyundai Accent, Azera, Elantra, Genesis, Tiburon, Entourage, Tuscon, Varacruz, and Nissan 350Z, GT-R, Murano, and Rogue? They all apear to be imported models which are not produced in North America.
      • 6 Years Ago
      The clunker has to be rated at 18mpg or less?? If so, that is ridiculous. My 23 year old Honda, rusting away and with 255,000 miles - by all means a clunker - would not qualify in that case! The "updated" EPA rating is still 23mpg combined. So I don't qualify for the money to get rid of that for a new Honda Fit, for example? Lame.
      • 6 Years Ago
      OK, i am moving to France, i am tired of socialism.
        • 6 Years Ago

        It appears as though Mage Academy contains no teachings related to the use and detection of sarcasm. Maybe if you joined the Red Mage`s guild, who specialize in some humour spells, you would have sensed the irony.
        • 6 Years Ago
        Uh, dude, I'm a French-American. And France is a heckuvalot more 'socialist' than here.

        Personally, I don't have a problem with the S-word, but if you do, France/Europe is the last you want to go. Come to Texas instead :P
        • 6 Years Ago
        Um, the irony of that statement is just awesome!
        • 6 Years Ago
        Socialism, EEK!

        (runs to nearest cold-war era bomb shelter designed to hide from the evils of *GASP* .....communism)
      • 6 Years Ago
      lmao @ another attempt to destroy the finest traditional fabrics of America by the transnationalist left wingers.

      Actually I take that back, calling Obama administration left wing is an insult to the socialist. At least they do it right in Germany, no speed limit and Go Karts on the road.
        • 6 Years Ago
        oh i get it now. so the government giving people money for doing something = socialism

        farmer subsidies = socialist
        tax credits for company trucks = socialist
        oil company tax breaks = socialist

        oh wait.... those are things republicans like, so those don't count
        • 6 Years Ago
        what exactly is socialist about this? i get how people can say that bank/aut company bailouts are socialist... but this? what is so left wing and socialist about this? i don't see it at all
        • 6 Years Ago
        I'm not republican, and yes. Those things are socialist. I oppose all that and take it a step further, the taxes imposed on most of those things in the first place are socialist. But glad to see you've got the left-right blinders on. If you tint one lens blue and the other red you can see in 3-D!
        • 6 Years Ago
        'socialism: a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.'

        Help much? Doubtful, let's try this:

        How about instead of taking 15 grand every year from me then giving 4'500 of it to everyone, let me keep my money and I'll buy a new car (or washing machine, blender, riding lawnmower, wacky waving inflatable arm flailing tube men) and no "stimulus" is necessary, debt is next to nonexistent and "we" don't decide what to do with my money.
      • 6 Years Ago
      How is this going to be paid for? Who's subsidizing this? The government? They don't have any money.
        • 6 Years Ago
        You will be. Just like every other time the gov't gives out "free" money.
      • 6 Years Ago
      Sorry, your 1992 Lumina gets too good of gas mileage to qualify.

      Oh yes, I'm not kidding.
      • 6 Years Ago
      Or, you know, we could get rid of CAFE and just tax gasoline at a higher rate. That way the incentive to buy more fuel efficient vehicles isn't temporary, and the automakers can plan products accordingly, instead of trying to predict the next arbitrary production goal Congress comes up with.

      If you want to stimulate the auto industry in general, then add a voucher on top of that to encourage buying any new car. These are separate goals, so I don't understand why they're being linked in the tax code.
      • 6 Years Ago
      One of my cars is an '85 peugeot that has less than a hundred thousand miles on it,needs no body work and runs perfectly. I wouldn't trade it in no matter how much the government offered me.
      In today's economy even with a cash incentive people still will not be able to afford to buy new cars.
      This plan is another example of stupidity,a waste of money and more of the government's trying to control everything which now is starting to include what we drive.
      For all of the above and probably more this is wrong at so many levels.
      • 6 Years Ago
      This bill would put every charity car donation program in the nation out of business since the amount of the voucher would be much greater than the tax deduction. The solution is to simply allow the charity to issue the voucher in lieu of the tax deduction. The charity would then junk the car in accordance with the bill. This way, everyone wins, the car dealer, car maker, car buyer and the charity.
      • 6 Years Ago
      Does the EPA plan to go back and test all the old cars or what? Tying this to MPG is RIDICULOUS. Some of the highest MPG cars on the road are 20 years old, cruising around sans-catalytic converter..
      • 6 Years Ago
      The truck clause is just retarded. Why the hell should a douchebag who's driving around in a 15 MPG SUV get $3500 to trade in their POS for a car that gets 17 MPG or slightly better?

      It should come out of their own pocket for being so dumb to be driving around in a car like that to begin with. Stupidity needs to be painful.
      • 6 Years Ago
      So, let me get this straight. I trade in my '82 Fleetwood (with 83K) with no car note and $1 a day insurance for 4 years of payments and triple the insurance? No thanks. I'll keep my car and my money!
        • 6 Years Ago
        On the other hand, turning in my '98 Durango for an update is seeming like a pretty good idea right about now. Got that ride at more or less the beginning of the SUV 'craze' and it hasn't seen any duty greater than a few furniture moves. I'm surprised the ball joints have lasted as long as they have, since the heater and several other bits have bit the dust already.

        If I could find a decent diesel or hybrid, I'd get the $4500, plus a green car credit, and get to dodge the sales tax for this year.
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