Cash for Clunkers

I have been waiting for a cash for clunkers voucher to buy my Prius. I saw an article in the news yesterday that said something like "If the bill passes both houses now, it might take effect by the end of the year." If that is the case, then I may not wait. The implication is that after the bill passes it might be months before they start issuing vouchers. Dumb question 1) What is the government lag time usually? I don't normally track laws and programs closely.

The current bill says it starts when it is enacted. OK. Dumb question 2) When is a bill considered to be "enacted?" When it is signed into law by President?

thanks

 

Yes, I think enacted in this case means sign by the president. Also if you look at the bill the govt has 30 days to set up the necessary procedures.

From the Bill:
"(d) Regulations- Notwithstanding the requirements of section 553 of title 5, United States Code, the Secretary shall promulgate final regulations to implement the Program not later than 30 days after the date of the enactment of this Act. Such regulations shall--

• • (1) provide for a means of registering dealers for participation in the program;... etc"

But my reading of it is that your car purchase will qualify 1 minute after it is signed into law and you would just have to find a dealer that would take your clunker and hold it until they had the information necessary to claim the voucher.

I think the biggest lag time will be the Senate. It could get included in the war funding bill this/next week or it could hang out for months and never get passed.

I am impatient sort and I have an offer for someone to buy my "clunker" for $2500 so I may not wait.

G

 

But will foreign made cars qualify? One possible amendment I heard discussed (this was a while back) was that anything manufactured in Canada/Mexico would be eligible for a reduced voucher amount and anything foreign made would not be eligible. I'm hoping that this would not make it's way back into the legislation, but sometimes you never know how the trading goes behind the closed doors.

 

Does anyone know where this is at?

 

At this point, they are trying add the funding to the supplemental war spending bill. They announced yesterday that they had a deal on that but if you have been following it at all there is a big fight over some other stuff (GITMO photos, IMF Bailout etc) so it may not pass. A vote is expected in both the house and senate on the war bill Monday I think.
Democrats Are Near Agreement on War-Fund Bill - WSJ.com

If that passes all that is left is to pass the clunkers bill in the Senate, but Diane Feinstein is actively opposing the bill calling it a "Handout for Hummers". Athough after reading her opinion piece in the WSJ it sounds like sour grapes that her bill isn't the one looking to get passed.
Handouts for Hummers - WSJ.com

Senator Stabenow said yesterday that she expects a vote the end of next week... for whatever that is worth.
Stabenow expects Senate vote on 'cash for clunkers' bill within the week | detnews.com | The Detroit News

 

On a related note, I have a van that qualifies and I have had a hard time selling. I finally got an offer for $2600 and I am supposed to sell it on Friday. Now I am conflicted. My 2010 Prius is arriving any day. But this bill is far from passed and even if it does the dealer might not be willing to wait a month for the Govt to get them certified in the program. On the other hand I could sell the Van tomorrow and find out next week that I could have traded it for $4500 arggg... I have about decided to take the bird in the hand and sell it. What would you guys do?
G

 

As long as you have a reliable vehicle to drive I would wait. $1900 buys a lot of gas. It will also give you a couple more months to save a larger down payment.

While you may be anxious to get your shiny new car, the Prius will still be for sale in a couple of months.

 

So very true. If I had a clunker to trade, I'd be waiting - but it wouldn't be easy :drama:

 

Gosh, I think it depends on whether you are a gambling man (or gal). In my cluttered mind it comes down to 1. Whether you think the bill will pass, 2. How long will it take the program to take effect, 3. Will the price of gas impact the availability of the Prius; subsection 3(a), Will Israel attack Iran thereby closing down the Straits of Hormuz thereby causing the price of oil to go to $250 a barrel as I've seen suggested by several sources; subsection 3(b) will the Iranian elections to be held tomorrow have an immediate impact on the Israeli/Iranian conflict?... ,etc, etc. 4. What is N. Korea up to this a.m.?
God it's any wonder I get any sleep at night.
Good luck.

 

Hmmm but wating is so difficult .. hehe, Plus there are some problems with waiting... My 2008 is depreciating at a pretty fast clip. With the 2010 models out I could easily loose 1-2k on the next few months. Also I am paying insurance and license on a van that I don't need and don't use. That could cost me a few hundred bucks. So I am not guaranteed to save money by waiting. In fact if the bill doesn't pass, I could miss out on my chance to sell the van. I have been trying for 6 months and finally had someone offer me a decent price on it.

hmmmmm decisions decisions.
G

 

You are right... waiting is no guarantee of saving money. I think about all that stuff and more and my sleep suffers.

G

 

2600 birds in the hand

 

We're getting rid of a 1987 Mercedes 420SEL in favor of a Prius. The Cash for Clunkers program would be ideal for us.

And, we can sort of afford to wait since we haven't firmly finalized on which Prius we want (or which dealership in the Bay Area we want to work with).

 

So what have you decided? The House and Senate have negotiated an final bill and it is ready to go to the president's desk attached to the war funding bill.

 

By DIANNE FEINSTEIN and SUSAN COLLINS

It's amazing how quickly a good idea can go bad in Washington. In January, we joined with Sen. Charles Schumer to introduce a bill that would allow Americans to trade in gas-guzzling cars in exchange for vouchers worth up to $4,500 toward the purchase of vehicles with greatly improved fuel economy. This legislation was modeled after programs in California and Texas that improved fuel efficiency, reduced pollution, and stimulated auto sales.
Our "Cash for Clunkers" proposal was a win-win for the environment and the economy. Then Detroit auto industry lobbyists got involved. Soon a rival bill emerged in the House, tailored perfectly to the auto industry's specifications.

The House bill was written so quickly that one of its main components -- a provision that would have excluded any vehicle manufactured overseas -- had to be removed because it violated trade laws. But the worst item on the auto industry's wish list is still at the heart of the bill -- a provision that undermines fuel-efficiency standards.

On Tuesday, the House approved this legislation, which would subsidize the purchase of a new Hummer H3T (16 mpg) or a new Dodge Ram 1500 4x4 truck (15 mpg), but not a two-year-old Ford Focus (27 mpg) or used Chevy Colorado (20 mpg). A companion bill is pending in the Senate.


Handouts for Hummers - WSJ.com

 

So, can someone who can speak "Governmentese" tell me if a 1983 Mustang would qualify as a 'Clunker'. I've read through the bill but may as well be reading Mongolian Chinese. Sorry to be so dense and thanks!

 

This WSJ editorial seems to be sour grapes by Feinstein because her version of the bill was not advanced. She specifically wanted to open up the bill to allow for used car purchases.

The final bill does not subsidize Hummers or Dodge Ram 4x4's. The compromise bill approved by the House and Senate requires new trucks to get 18 mpg and be at least 2 mpg more efficient than the traded vehicle. It does not allow vouchers for used vehicles.

 

The latest version of the bill I've seen required clunkers to be 1984 model year or newer so your Mustang does not qualify.

You can blame car clubs and their supporters for the 1984 cut off. They are terrified of the scraping mandate in this bill. For some reason they think people will trade in priceless muscle cars to get a $4500 voucher on a new Hyundai and muscle cars will be lost to the world forever.

 

Christ, if they could see the car I doubt they'd lose any sleep over the potential loss to humanity!

 

Does anyone know if the car has to be strictly insured continuously for one year? I have a van that wasn't insured for a few months for the past year, but I've owned it since forever. Do you think they consider how long you've owned the car?