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House OKs 'Cash for Clunkers' Bill

Rebates up to $4,500 would go to buyers of more efficient vehicles

By Rob Quinn,  Newser Staff

Posted Jun 10, 2009 5:50 AM CDT

(Newser) – The House has passed legislation to give people who trade in gas-guzzling vehicles for more efficient new models rebates up to $4,500, the Detroit News reports. The $4 billion "cash-for-clunkers" bill, aimed at giving the auto industry a boost, passed 298-119, and its backers will now try to get it attached to legislation in the Senate.

"The auto industry is going through a tremendous restructuring,” said Rep. Sander Levin, a Democrat from Michigan. “If there is not increased demand, that restructuring cannot succeed.” Some conservative Republicans opposed the bill, charging that it would do little to create demand, while environmentalists criticized it for offering rebates to buyers whose new vehicles were just 4mpg more efficient.

The bill's backers say it will spur around 1 million new vehicles sales in the US, reversing a massive drop over the last year.
The bill's backers say it will spur around 1 million new vehicles sales in the US, reversing a massive drop over the last year.   (AP Photo/Mark Stahl)
Fuel-inefficient vehicles turned in under the cash for clunkers bill will be scrapped and their owners given rebates of up to $4,500/-.
Fuel-inefficient vehicles turned in under the "cash for clunkers" bill will be scrapped and their owners given rebates of up to $4,500/-.   (©dave_7)
The final Ford Expedition is driven off the assembly line last fall as the Michigan Truck Plant prepares to be retooled as a car plant to begin producing small, fuel-efficient vehicles.
The final Ford Expedition is driven off the assembly line last fall as the Michigan Truck Plant prepares to be retooled as a car plant to begin producing small, fuel-efficient vehicles.   (AP Photo/Ford Motor Co., Sam VarnHagen)
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COMMENTS
Showing 2 of 2 comments
Reader65069154
Jun 10, 2009 12:13 PM CDT
I concur that this idea is admirable. Is there something to stop me from buying a clunker for $50 then in turn buying a new car to receive the incentive cash?
Fondue
Jun 10, 2009 2:17 AM CDT
Found this in an article on USAToday: Q: If the House bill becomes law, how would it work? A: The government would send up to $4,500 to the selling dealer on your behalf, if you: 1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon. 2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500. Example: Trade that well-worn 1985 Chevrolet Impala V-8 police special, rated 14 mpg, for a 2009 Impala V-8 rated 19 mpg and the government will kick in $3,500. Downsize to Chevy Cobalt (27 mpg) or even a larger Honda Accord (24 mpg) and get $4,500.

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