Cash for Clunkers

I know I paid for it last summer. Gas was $4.50 a gallon. Glad to see good ideas to raise the mpg of the total of vehicles in America. About time. I don't want to see people be told what kind of vehicle they can own, but somebody has to do something. Also, don't worry about your grand kids paying for it. I hear good things about tax policy.

 

Same here. I have a 1994 Honda Accord. The problem is the current summary of compromise bill appears to limit old clunkers to ones with 18 MPG or less.

For example, your 1985 Cressida is about 20 MPG(combined) and my Honda is 25 MPG. Therefore, under current bill tossed around, both yours and mine would not qualify.

My guess is they are going to give money to old SUV's, vans, trucks or large american clunkers.

I will probably have to keep my fuel efficient Honda for 10 more years like your 1985 Cressida. (although I have some concern about emmisions from the old engine of my Honda).

 

Probably not. The clunkers should have been registered under your name and driven for last 1 or more years.

I am sure there will be some cheating but probably not your scenarios. In Germany, some dealers do not junk the car and sell the clunkers to 3rd world countries. In some cases, some of those illegally exported clunkers re-entered Germany and sold to someone there with faked vehicle identities, reportedly.

 

The summary of the Cash for Clunkers agreement on the NY Times website seems to indicate that the minimum fuel economy for the new vehicle needs to be 22 MPG for passenger cars and 18 for light-duty trucks.

It makes it sound like you get the voucher based on the mileage improvement of your new car over your "clunker" and makes no mention of a required mileage rating for the clunker. This would let a whole lot of people qualify for a voucher when buying a Prius.

 

Hee hee. It's like a gun buy-back, except this time the "dangerous item" is a carbon emitting vehicle! Well, at least we've got the money to spend, right? Boy I love government.

 

Your car must have a combined MPG of 18 or below to be eligible.
The following is a "fact sheet" from the House Committee on Energy and Commerce.
It is what is cited in the NY Times article. The Times is ambiguous about the 18 mpg standard. The House Committee is not.
Sorry.

May 5, 2009
Fact Sheet: Cash for Clunkers
Committee on Energy and Commerce
Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values
•
Passenger Cars: The old vehicle must get less than 18 mpg. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
•
Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.
•
Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
•
Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.

 

There is some confusion on the mpg rating and which vehicle it applies to. This new york times article says "Under the plan, consumers can turn in cars or light-duty trucks that get less than 18 miles a gallon."
Congress Close on ‘Cash for Clunkers’ - Wheels Blog - NYTimes.com

But then their pop-up graphic says that the new vehicle must get at least 22 mpg and at least 4mpg better than the old one.
The New York Times > U.S. > Image > Summary of ‘Cash for Clunkers’ Agreement

I'm guessing the graphic is correct and the story is wrong.

G

 

This is a really silly bill in my view. I like that they want folks to upgrade their mileage, but this just rewards folks who made REALLY bad choices in the first place. Upgrading to 22 mpg in a car? What? You ought to be penalized for buying something with MPG that low rather than rewarded.

 

Greylar, the graphic is lifted directly from the House Committee website.
When taken out of context the graphic is ambiguous, but the wording on the site is not.
The graphic is there to show the minimum mileage allowed when upgrading from various types of vehicles.
According to the committee, you have to be below 18 mpg in a car or light truck.

 

Special Interest groups have a stranglehold on the U.S. government and "elected" officials. For those that think this is free money... are also the ones that think they'll get their Prius for invoice next week.
More $billions on our kid's backs funded by China.

Personally my main concern would be that this program will be fraught with fraud. Too enticing. Since I'm not trading in a vehicle, can't say I wouldn't look around at (illicit) possibilities for that $4500 - would fund the solar roof, Nav, and other nice goodies. Thanks taxpayers!

Not saying this is totally a bad idea, but like most anything the Feds touch - it sounds better than reality. Anybody out there in countries that have programs as this already in place - how's it going?


Congress Close on ‘Cash for Clunkers’ - Wheels Blog - NYTimes.com

 

Here is a link to the factsheet with the graphic table that the times lifted.
http://energycommerce.house.gov/Press_111/20090505/cashforclunkers.pdf

 

I stand corrected

 

LOL
How much will this sell for under the new law? Note the verbage "In good working condition"

1990 Mercury Grand Marquis $400 obo

G

 

There is nothing there that says you can't trade one in as well as having one crushed. No one sell your junkers for the next couple of weeks they may go up in value when everyone starts looking for a car to crush.

G

 

Too bad. My Echo doesn't qualify. Oh well...
Interestingly, my Toyota salesmen haven't heard of the program. They said they also haven't gotten the 2010 prices. Makes me worry they aren't up on these new things.

Rich N.

 

Add another 'frenzy'.

How can I get my hands on a clunker?
Does cousin Billy Joe still have that old Torino in his back yard?
Maybe sick grandma has me on the will for her Dodge Airies.

And if there's a minimum ownership period (there better be...) how do I get around that? You can bet there will be an underground black market. Another scam for the bad guys to take advantage of.

Bet there's a bunch of tongue-wagging, arm-twisting, hand-wringing, back-slapping going on in D.C. on this one. So what's new?

 

My 1998 Saab 900 SE Turbo (automatic) has revised EPA estimates of

17 City / 23 Hwy / 19 combined

So that means I can trade this car in and get $4,500 towards a new Prius?

 

Does anyone know if they will use the actual fuel economy of the specific vehicle to determine mileage on the old vehicle? Or will they use the official EPA rating for a similar new vehicle?

In other words, I drive an '05 Taurus. I get a real world mileage of about 16.5 m.p.g., but I imagine that they are rated higher than that, or at least were when new?

For me, the extra $4,500 would pay 98% of the costs of the Advanced Technology Package (well all but $100 of the $4,600 costs). Also, is there a time-frame for when this will be voted on, or is this a done deal already? (and if so, where do I get my voucher?)

 

The US bill is modeled after Germany's "cash for clunker" bill. The Germany program has been very effective. German auto sales have been 20% better than last year since the program was rolled out in February.

In the US sales are down 40% compared to last year.

 

Sorry but your clunker gets more than 18 combined MPG so it won't qualify. The bill is stupid. They should go by the difference in MPG.

In your case, you would more than double MPG yet you get $0.