Obama signs Cash-for-Clunkers bill into law, countdown to start begins
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]
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