Congress looks again at Cash for Clunkers program

We knew it was coming. Right on schedule, House Speaker Nancy Pelosi (D, Calif.) has introduced legislation to Congress that would pay drivers of older vehicles a predetermined sum to replace them with new or newer cars. Depending on the year of the vehicle being traded in, a voucher for up to $4,500 would be granted to the driver. This voucher could be used to purchase a car manufactured after 2004 that has an EPA fuel mileage rating that is at least 25 percent better than industry average for its class. Alternatively, a card for a smaller amount could be redeemed for mass transit fare.

Many in Congress are said to believe such a program could speed up the turnover from older and dirtier vehicles to newer, more fuel efficient models as well as stimulate the economy and provide a boost for the ailing auto industry. If passed, the plan will reportedly cost as much as $2 billion per year to operate and would remove around 1 million older cars from the roads per year.

[Source: Detroit News Photo: Jot Powers - CC 2.5]

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