Saturday, June 20, 2009
Car shoppers looking to get rid of gas-guzzling old vehicles could get up to $4,500 in government vouchers to help them buy more fuel-efficient vehicles under "cash for clunkers" legislation President Obama is expected to soon sign.
The bill, which has miles-per-gallon requirements and other rules, was approved by the Senate Thursday, after earlier winning passage in the House. It provides $1 billion for the program from July through November.
Here is how the program works:
• • Car owners get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less for one getting at last 22 mpg. The voucher grows to $4,500 if the new car's mileage is at least 10 mpg higher than the old vehicle.
• • Owners of sport utility vehicles, pickup trucks or mini vans getting 18 mpg or less get a voucher for $3,500 if their new truck or SUV gets at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage is at least 5 mpg higher.
• • Eligible vehicles must be manufactured in model year 1984 or later and must be insured, registered in the car buyer's name and in use for at least one year.
• • Car shoppers don't actually get cash for their clunkers. The voucher will be applied to the price along with any other incentives.
• • Dealers will be required to send old vehicles to a disposal facility.
• • The program is expected to be implemented by early August and to be available through November.
• • The program will be available to dealers certified to participate in the program.
More wastful spending the vouchers will go to the car dealers but who pays in the end the taxpayers. Anytime the goverment enacts a program it is with our money .