BREAKING: House passes 'cash for clunkers' legislation
by Damon Lavrinc on Jun 9th 2009 at 6:37PM 
The U.S. House approved the "cash for clunkers" legislation earlier today, paving the way for consumers to snag up to $4,500 for trading in their older vehicles for new, more fuel efficient transport.
The bill, which passed 298-119, drew overwhelming support from automakers, local business groups and dealers who claimed the passage could boost sales – further aiding GM and Chrysler's "reinvention" – during the economic downturn.
Although politicians and pundits are sure to weigh-in on the merits of the bill, the specifics appear clear: if your car gets 18 mpg or less and you trade in for a new vehicle the achieves at least 22 mpg, you receive a $3,500 voucher, or $4,500 if the mileage of the new vehicle is 10 mpg higher than your previous heap. SUV, pickup truck and minivan buyers are eligible for a $3,500 voucher if their vehicle gets at least two mpg higher than their trade-in and $4,500 if the vehicle gets five mpg more than their older model. The vehicle has to have been insured for the last year and there is no trade-in value beyond the voucher. The program is also available for leases. Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded, and the government estimates that around 25 million vehicles are eligible.
[Source: AP | Image Source: Theo Heimann/Getty]
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Reader Comments (Page 1 of 8)
Ricky 6:42PM (6/09/2009)
Wait, so is that 18mpg combined, city, or highway?
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Nightcrawler 7:04PM (6/09/2009)
18 mpg combined, as shown by the new calculations at www.fueleconomy.gov. (Not what was on the original sticker)
KeatMP 8:37PM (6/09/2009)
Ok, so your car has to get 18 MPG or less to even qualify at all? Or can you get any car that gets 10 MPG or better and still qualify for the $4,500?
Nightcrawler 8:43PM (6/09/2009)
I don't understand your question. Yes, to qualify at all a clunker car has to get 18 mpg or less. That being the case, then a 10 mpg car would qualify.
KeatMP 11:37PM (6/09/2009)
I said that wrong sorry...but I think you answered my question. What I meant to ask was no matter what....it the car your buying get 10MPG better than the car your trading in, than do you qualify?
For example...if you trade in a Crown Vic that gets 20MPG (I know, yeah right) for a Civic that gets 30MPG does that qualify?
Thanks for the help on the previous question Nightcrawler.
Alex 9:22AM (6/10/2009)
No, you would not qualify. The trade in must be 18mpg or less to receive the $3500 voucher.
Mike 1:50PM (6/17/2009)
At 18 mpg combined, just about nothing is eligible for this program. This only applies to big honking V8 SUVs from the 1990s. There are a lot of old clunkers from the 1990s on the road with defective EPA equipment, leaking oil and other toxic fluids, and aren't able to achieve 1/2 of the EPA mileage.
Not many people are going to be able to take advantage of this bill.
Mike 1:54PM (6/17/2009)
Sorry, I meant to say:
There are a lot of old clunkers from the 1990s on the road with defective EPA equipment, leaking oil and other toxic fluids, and aren't able to achieve 1/2 of the EPA mileage, which this bill will not cover because just about every car on the road has been rated at more than 18 MPG combined.
phewop 6:46PM (6/09/2009)
What a disgusting bill. Hand out tax payer's money for people to destroy their perfectly good cars, which then end up in landfills.
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Erik 8:04PM (6/09/2009)
I couldn't agree more. This is a sad day. Truely aweful legislation.
Clay Garland 8:59PM (6/09/2009)
I too am in awe of its stupidity.
WTF 3:11AM (6/10/2009)
I'm in awe of your stupidity. you think cars end up in landfills? what is wrong with you? These cars that get crushed and shredded will be recycled.
Rich 11:00AM (6/10/2009)
"perfectly good cars"
18 mpg.
Riiiiiiiight.
Icon149 11:19AM (6/11/2009)
what i think is ridiculous is that we keep putting incentives on trucks and suv's... don't get me wrong, people should have the right to buy what they want, i get that. but not with my money. why can you buy a truck that get 20 mpg and get the voucher? if it is to help people who can't afford to buy a new car how is a 20mpg car going to help them with there financial troubles? it doesn't help us get off of foreign oil. if you argue that people need a truck to pull a boat... why do i need to subsidize someone who owns a boat... or maybe a minivan to haul the 4 kids... why should my tax money go to someone who is irresponsible and had 4 kids when they can't afford them... and if they have a business and need a truck then they are getting tax write offs for a truck so i don't want to help pay for it and have them not have to pay taxes on top of it. eh, could have been a good way to get old trucks and suv's off the road and replaced with more practical cars (and if the car only needed to achieve 28mpg then there are a lot of very nice very practical cars, not just rolling penalty boxes.) instead people will trade in there old full size pick ups for new full size pick ups... you know, to pull the ski boat to the lake... with my tax dollars... and i don't qualify to get my old junk heap buick off the road because it gets better than 18mpg (though barely).
Marcello 6:53PM (6/09/2009)
they will never have my 1982 Mazda RX-7!!!!
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Erik 8:22PM (6/09/2009)
That's right, they won't. 84 and newer only.
Jei 10:46AM (6/17/2009)
lol. sorry, had to laugh a bit.
The limitations for eligible vehicles will disqualify many people....once you understand all of the rules. Many people don't like this new Bill, but the fact is, many people won't even be able to use or it won't make "financial sense" to even pursue the voucher b/c the people who can afford to purchase a new or newer vehicle won't be able to use their trade-in value of their current cars as credit towards buying the new vehicle.
Aubs 7:01PM (6/09/2009)
Well, this will send used car prices to the moon. Buy 'em while you can, because soon they'll all be worth $3,500-$4,500 to someone, even those that don't run I guess.
I wonder if this is a tax credit or cash. If it's the former, that's worthless to people who aren't showing a good income at the moment. If it's cash, yee-haw!
Maybe this applies to my 2000 Discovery II with a blown motor sitting out back. If only I had the money for a new vehicle, I could get close to $10,000 or more off with this incentive. I'd be happy to see that thing end up in the junk heap!
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Nightcrawler 7:07PM (6/09/2009)
Uh...no. First of all, few used cars get poor enough gas mileage to qualify. Secondly, even if it did, you have to have the car registered and licensed to you for one year before you trade it in. so if that's your plan you'll have to buy your old clunker before the plan is signed into law, because it's only in effect for one year.
I do wonder about that one year registered and licensed to the buyer though. How are the dealers supposed to verify that? Each state's DMV would have to be contacted by the dealer and have a system set up to give them the answer.
David 7:12PM (6/09/2009)
Nightcrawler - This will probably end up as a tax credit, so the dealer won't have anything to do with verification.