Federal Cash for "Clunckers" program

[Mike P]

Don't know how many saw this this morning. I have some thoughs(not very pleasent) about it but wondered waht some of the other opinions are.



Congress considers ‘cash for clunkers’ proposal
Owners of old gas hogs would get $4,500 to have them taken off the road

updated 5:10 p.m. MT, Wed., Jan. 14, 2009
WASHINGTON - Congress is mulling a proposal to pay people to get rid of those old gas guzzlers sitting in their driveways.

Under legislation introduced Wednesday in both the House and Senate and called the "Cash for Clunkers" program, drivers could get vouchers of up to $4,500 when they turn in their old fuel-inefficient vehicles for scrapping and buy vehicles that get good gas mileage.

People could also turn in their old cars for vouchers that could be used to ride public buses and trains.


The bill, said Sen. Dianne Feinstein, D-Calif., "would be an important part of helping getting America's struggling automobile industry back on its feet, and help consumers who are concerned about covering the cost of buying a more fuel-efficient vehicle."

Taking gas guzzlers off the road, added Sen. Susan Collins, R-Maine, a co-sponsor, "would reduce our dependence on foreign oil, decrease greenhouse gas emissions and stimulate the economy."

The bill envisions the program operating for four years and encouraging the retirement of up to one million vehicles a year, saving between 40,000 and 80,000 barrels of motor fuel a day by the end of the fourth year.

Drivers would be eligible for reimbursement for purchase of a new or used vehicle with a fuel economy rating that exceeds federal targets for that class of vehicle by at least 25 percent. The vehicle must have a manufacturer suggested retail price of less than $45,000 and be a model year 2004 or later.

The vehicles turned in must be drivable, registered in the United States and have a when-new fuel economy rating of less than 18 miles per gallon.

In the first year of the program, a person trading in a vehicle that is model year 2002 and later would be eligible to receive $4,500 for purchase of a new vehicle, $3,000 for purchase of a used vehicle or $3,000 for transit fare credit. For model year vehicles 1999 to 2001, drivers would get $3,000 for the purchase of a new vehicle. Those who trade in vehicles that came out in 1998 or before could get a credit of $2,000 for a new vehicle.

"This is an even better trade-in offer than they could get from any car dealership," said Sen. Charles Schumer, D-N.Y., also a co-sponsor.

A person could obtain no more than one voucher in any three-year period. Dealers and scrap recycling companies could also get payments of $50 per vehicle. Initial estimates set the cost of the program between $1 billion and $2 billion a year.


Here is the link to


http://www.msnbc.msn.com/id/28663037...287/?gt1=45002

[Dave Severson]

Them dang Feds gonna be printing so much worthless money!!!! Who the heck they gonna get to pay these bills??? Just borrow some more $$$$ from the Chinese and keep on spending I suppose!!!!!

If this thing makes it into law, maybe I should just trade cars and call it a tax refund????

Not sure there is an answer to this financial situation that we're in now...... At what level does the federal deficit just revert to 0?? Ya know, like an old car when the odometer hits 999,999, then it goes back to zero.. Hey, maybe that's the answer!~!!!!!

[jerry clayton]

I was surprised to see that the most money is proposed for the newer cars--2002 and newer

Old er cars get less

This bill will accompanplish what???

[falconvan]

What a crock! We were all so happy in Missouri when they changed the emission laws to exclude everything under 1996 and all those emission inspection stations went away. Now it'll all probably come back worse than ever.

[colorado815]

How much of it is backed by yhe auto makers? Just to push for more sales.
Nancy and her cronies need to be RETIRED!

[falconvan]

My father in law is a lifelong UAW member and recently he was telling me I should support our automakers and trade in my 170,000 mile minivan for a new one. "You make enough money and could easily afford a new car," he says. I told him there was no way I was going to get into a car payment and have to carry full coverage insurance on a car when the job and real estate markets are as fragile as they are. I have always bought decent used cars and drove them for several years. I've saved a lot of money over the years by doing repairs myself, avoiding payments, and paying cheaper insurance. Sorry, but it's not my patriotic duty to cripple myself with unnessassary debt.

[pro70z28]

It's just another step down that slippery slope to socialism.

You'll all heard that analogy of the frog in warm water.