The 'cash for clunkers' rules
Not everyone will qualify for stimulus incentives to trade in old gas guzzlers for more efficient new cars.
Worth trading in? (Corbis)
Even if you love your old gas guzzler, said Joe Taschler in the Milwaukee Journal Sentinel, now might be the time to say good-bye. The "cash for clunkers" rules are scheduled to take effect on Friday. The chance to get at least $3,500 to trade in an old vehicle for a new, more efficient one is "generating considerable buzz among consumers, car dealers, and auto industry watchers."
"Critics say that all of the moving parts of the Obama stimulus plan are barely moving at all," said Linda Stern in Newsweek. But that's not the case with the $1 billion "cash for clunkers" stimulus. "Blink and you might miss" it. "Some hungry dealers have jumped the gun and started offering cash for old gas guzzlers earlier in the month," but the program officially was scheduled to begin July 24 and run for three months.
Here's how the "cash for clunkers" rules work, said Warren Wise in the Charleston, S.C., Post and Courier. "For qualifying vehicles, buyers will get a $3,500 credit for a new car that gets at least 4 mpg more than the trade-in. The credit rises to $4,500 if the new vehicle has a combined fuel economy value that is at least 10 mpg higher than the trade-in vehicle." If it works, nearly 250,000 new vehicles will be on the road when the program expires Nov. 1, and "an equal number of road-weary cars will go to the scrap heap."
That's optimistic, said Robert Samuelson in The Washington Post. The "cash for clunkers" stimulus is "stunted." Macroeconomic Advisers estimates it "might advance a mere 130,000 vehicle sales," which is a far cry from what the Obama administration has promised.
The trouble is that many people who think they can collect tax breaks for their jalopy won't qualify, said Nick Gillespie in Reason. Check for yourself to see if your car qualifies under the "cash for clunkers" rules. The idea behind this program was to reduce pollution from old gas guzzlers while boosting car sales and the economy—instead we'll get another example of the "ineptitude of government."
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5 Comments
Posted by Mark, Friday, July 24, 2009, 10:53 pm To get the auto industry back on track, it would make more sense to give people the incentive for buying an American car with better mileage, and give a lesser rebate for a foreign car.
Posted by Johnny B, Saturday, July 25, 2009, 4:12 am The NHTSA ignored the original legislation and demands insurance be required for places that do not have mandatory insurance. If you belong to one of these states Wisconsin and New Hamshire and are unhappy that you cannot qualify for this program, call your senator and ask them to help you.Wisconsin's senators are Russ Feingold and Herb Kohl. New Hampshire's senators are Judd Gregg and Jeanne Shaheen.
Posted by Bloomsday, Saturday, July 25, 2009, 5:04 pm Mark, what make an American can American? What constitutes a foreign car? Honda and Toyota, among others, build cars in the U.S. and employ thousands of Americans. Besides, why make someone buy a subpar American car, when there are plenty more foreign cars that get great gas mileage.
Posted by Reality, Monday, July 27, 2009, 6:54 pm A shame most vehicles do not qualify. A shame this article provides little understanding of the federal EPA, and the billions of automakers lobby dollars that result in inaccurate and meaningless MPG ratings.
Posted by modern classic car owner, Friday, July 31, 2009, 6:52 pm this whole cash for clunkers thing is just crazy people tradeing in good old well built cars for the newer cars which are absolutly crazy these new cars are junk and will never match up to the cars of yesterday like the dodge aires the car in the pic if anything we should be scrapping new cars and giving out old cars
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