- Jul 14, 2009
REPORT: Impact of Cash for Clunkers might not be so hot; charities insisted on 18 mpg limit
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]