7/28/2009

'Cash-for-clunkers' plan

It hadn't dawned on me that this program requires that the cars being turned in are destroyed. Why not give the money to anyone who buys a car that gets 10 more mpg than the original car that you had? This is a program that only a politician could love. This is from USA Today:

• Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 mpg or less for a new car that is 10 mpg higher than the old car.

• SUV, pickup or minivan owners who get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.

• Large trucks (pickups and vans weighing 6,000-8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.

• Participating dealers can access electronic vouchers from the government for consumers to purchase or lease qualifying vehicles.

• Dealers are directed to ensure that older vehicles are crushed or shredded to get the clunkers off the road.

• The program is aimed at replacing older vehicles, so it would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.

• Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured and registered to the same owner for at least one year immediately prior to trade-in.

• The new vehicle must have a manufacturer's suggested retail price of less than $45,000.

• The mpg values are EPA combined city/highway fuel economy as posted on the window stickers of the new vehicles and can be found at www.fueleconomy.gov.

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2 Comments:

Blogger Angela said...

The $4500 is essentially what even the poorest negotiator in the world could receive as a trade-in value anyway. They're just funneling more tax money into corporate coffers.

Mandating that the used cars get crushed only serves to keep the price of used cars up.

7/28/2009 12:24 PM  
Blogger karenc said...

If your car doesn't qualify for a voucher, you can get a tax deduction when you donate car to charity. Details at http://www.cars4charities.org.

7/29/2009 11:10 AM  

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