Your old beater sitting in the driveway might be worth more than you thought.
Clunker cars might soon generate thousands in cash for those willing to trade them in for fuel-efficient models.
Your old beater sitting in the driveway might be worth more than you thought.
Clunker cars might soon generate thousands in cash for those willing to trade them in for fuel-efficient models.
The Drive America Forward Act, more commonly known as Cash for Clunkers, is being debated in the U.S. Senate. The legislation is being sponsored by U.S. Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kansas. If it becomes law, owners of trade-in vehicles would be eligible for a $4,500 voucher payable to the dealer for a fuel-efficient vehicle, if the trade-in car meets specific requirements.
The vehicle must be in a driveable condition, manufactured in model year 1984 or later and have a combined fuel economy of 18 miles per gallon or fewer. If the new car is more than 10 mpg better than the trade-in vehicle, the driver will receive the full $4,500 voucher. If the new vehicle is between 4 and 9 mpg better than the trade-in, the driver will receive $3,500.
Car owners still would need to make up the difference in cost after their voucher is received.
“It provides incentives to help people on Main Street purchase new vehicles from their local dealers,” said Matt Williams, Stabenow’s spokesman, in an e-mail. “It will remove less fuel-efficient vehicles from our roads, helping to reduce pollution in the environment.”
The legislation, as proposed, will be in effect for one year, which is a good start, said Charles Territo, spokesman for the Alliance of Automobile Manufacturers.
“At this point, it is obvious that something needs to be done to help encourage consumers to purchase new vehicles,” Territo said.
Stimulus money will fund the proposed legislation, covering the costs of the vouchers but not the entire cost of the new vehicles.
“The people that are driving those old cars usually don’t have the money to go buy a new one,” state Rep. Geoff Hansen, R-Hart, said. “So I don’t know how much it will work.”
The bill needs to support drivers who can’t afford to purchase new vehicles, said Ann Wilson, senior vice president for government affairs for the Motor and Equipment Manufacturers Association, which represents manufacturers of motor vehicle parts and systems.
Repair and maintenance options for old vehicles needs to be added to the legislation, Wilson said. This would help those who are not able to afford the purchase of a new vehicle.
“When your vehicle is properly maintained and repaired, you can actually maintain the fuel economy of the vehicle tremendously,” Wilson said.
By promoting the sale of fuel-efficient vehicles, the legislation might have a positive effect on the economy and the environment by reducing greenhouse gas emissions and even nitrous oxide emissions, state Rep. Mark Meadows, D-East Lansing, said.
“Protecting the environment is a job-producing enterprise as it is,” Meadows said.
Encouraging fuel efficiency as a state and as a country is important and needs to be supported, said Laura Shelly, an MSU no-preference junior.
“I think there are a lot of people now these days that are concerned with the fact that their cars are fuel-efficient just because of gas prices,” Shelly said.
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