"Cash for clunkers" revived as CARS Act

A new "cash for clunkers" bill has been introduced in the House to help stimulate sagging auto sales and boost fuel economy of the national vehicle fleet, the Consumer Assistance to Recycle and Save (CARS) Act.

The bill, introduced by Representative Betty Sutton (D-Ohio) and co-sponsored by Representatives Bruce Braley (D-IA), John Dingell (D-MI), and Candice Miller (R-MI), would provide tax incentives of between $3,000 and $5,000, or mass transit voucher, to consumers who trade in vehicles at least eight years old for ones that get better fuel economy. The size and availability of the incentive would depend on its fuel economy and where it was built. (There is also a provision for $7,500 for a vehicle assembled in the United States and achieves 100 mpg–essentially requiring an electrified powertrain.) The CARS Act offer could be used only once per consumer.

The program would only apply to vehicles assembled in North America. The fuel economy targets to receive a $4,000 voucher would be lower for cars built in the U.S. than in Canada or Mexico: 27 mpg vs. 30 mpg. Trucks would have to return 24 mpg highway to receive the same amount. Passenger cars assembled in the United State would be eligible for $5,000 if they could meet the 30 mpg highway  

Incentives would be limited to cars that cost less than $35,000, and it would require that the old trade-in vehicle be scrapped, not resold.

A similar measure in Germany has spurred automotive sales, with the country showing a 21-percent rise in February, compared against the same month in 2008, according to Sutton.

While Detroit automakers, car dealers, and UAW workers have lined up behind the bill, some import automakers have expressed opposition. Collector-car hobbyists and the aftermarket industry have also opposed previous clunkers legislation.  For more information on the Cash for clunkers program, see our guide.

—Eric Evarts

Comments

[Paul]

I have a 12-year old Camry that I would definitely trade in on a US-assembled Accord if this "CARS Act" goes through.

[Imee]

I'm pretty happy that the program is being reconsidered, given the fact that it could not only benefit the economy--it could also benefit our health and the environment. I hope the US auto industry will accept this and that people who do have gas guzzlers still in their garages would take advantage of the program.

[Kumar]

I've got a '98 Dodge Durango that I'd be happy to turn in for a high mileage hatch or wagon made in the USA.

Turning in old cars would also be good for the recycling business, provided these were all to be scrapped and recycled, not sold for parts.

[Ben]

To be honest, I have a no longer fuel efficient, falling apart 1994 Thunderbird, and as much as my fiance and myself discuss it, we can't afford to buy something newer and more fuel efficient to replace it (we already have a 2007 cobalt that she bought before we met she is paying on). I was looking at a number of used foreign cars, but with that kind of incentive, I would happily buy something domestically made and fuel efficient. I wonder how many other people out there are like me and only hold on to the beater because they just cant justify a high car payment. My only problem is figuring out what is made here, I would like a fusion (made in Mexico) but would likely have to get a Honda Civic is made right here in Ohio.

[Bill]

The problem a lot of people might be forgetting is that the old EPA fuel estimates were a lot more generous than the new ones. Part of that bill states that the new car must get 25 % more mileage than the old car. Paul in one of the previous comments with a 12 year old Camry might not be able to buy that Accord.

[Susie]

When will this act be put into place?

[Nancy Maxwell]

Here is the latest on the progress of the bill http://thomas.loc.gov/cgi-bin/thomas

[Victor M. Estremera]

Finally!!!! I think echos were heard. Ive been in the parts business over 35 years and I've been saying this for a very long time. I got a couple of these 8 cylinders that I will definetly get rid off. Thanks. You got my support on this one.

[Victor M. Estremera]

I hope this applies to Puerto Rico also. There are alot of these "clunkers"/ gas guzzlers around.

[J Davidson]

What is the latest on the CARS act/cash for clunkers bill(s)? I have a '93 Blazer I would love to get rid of. 15 MPG is killing me. I would even buy a Chevrolet Malibu 4cyl if this bill actually happened. As long as the gub'mint is throwing billions at the big 3 (which they have already burned thru), they might as well stimulate buying and make these companies viable, at least for a while until the economy recovers. The comment above from the guy who thinks these companies should go away does not appreciate the importance they have to our national economy. Cars are one of the few things actually made here in the US anymore.

[CJ]

Ok, so we bail folks out of their homes and now we provide them with a down payment on a car based on fuel efficiency? This is social engineering at its finest and another step toward socializm. One day we will wake up with a government beaurocrat in our bed telling us how to pro-create in the most efficient way and where to make the check out too....

Give me a break people.

[B FARMER]

I HOPE MY 1993 BUICK CENTURY WILL BE ONE OF THE CARS I CAN TRAID IN. I DESPERATELY NEED A NEW CAR.

[P G]

You can negotiate a better price on your new car if you don't purchase any warranty deals, free oil changes or reduced repairs. just have it maintained or fixed at your local independent shop. It says right in the article the independent garages do a better job anyway!

[J T]

Does this only apply to the purchase of a "NEW" vehicle? or can I apply it to the purchase of a used vehicle?

[mike]

Check out www.cars.gov for the latest info on this CARS act

[J P]

Its funny Ive got a running 1970`s Caddy but it looks like the worst of the worst millage cars are not included. 25 yrs or less and yet the worst hogs are left out.

[sam]

well, all those cars are being destroyed - chemicals are being added to their motors, fuel lines ,tranny ect. then they will be parted for scrap metal and the rest mashed and throw into the dump. Then, anyone who wants a cheap car for their teenager or themselves will b forced to pay full retail. those who need a replacement part like a tranny, hub... Read More assembly, etc for their current car will b forced to pay full retail from the dealer/manufactuer and the owner of junkyards will be put out of business. and the used car market costs will rise. it will take time but overall its a scam on the country. I guess it is part of the bail out program to get emissions emmitting clunkers off the road.
but its LAME!