LAST AUTO NEWS – CONGRESS DEBATES “CASH FOR CLUNKERS” PROPOSAL
Last Auto News –
Uncle Sam wants your ’88 Ford Bronco, and he’s accommodating to overpay.
Under a angle alien in Congress on Wednesday, the federal government may pay Americans to about-face in older, higher-emissions cars and buy new, added able models, or adjudge to ride accessible transit. The money would be paid in the anatomy of a agenda that could be acclimated against the acquirement of a newer car, or against commuting costs on accessible transit, so artlessly affairs bare cars to the government and pocketing banknote will not be an option.
The AP explains, “Drivers would be acceptable for agreement for acquirement of a new or acclimated car with a ammunition abridgement appraisement that exceeds federal targets for that chic of car by at atomic 25 percent. The car accept to accept a architect appropriate retail amount of beneath than $45,000 and be a archetypal year 2004 or later.” The amount of the agenda would depend on the amount of the trade-in. “In the aboriginal year of the program, a being trading in a car that is archetypal year 2002 and after would be acceptable to accept $4,500 for acquirement of a new vehicle, $3,000 for acquirement of a acclimated car or $3,000 for alteration book credit. For archetypal year cars 1999 to 2001, drivers would get $3,000 for the acquirement of a new vehicle. Those who barter in cars that came out in 1998 or afore could get a acclaim of $2,000 for a new vehicle.”
In abounding cases, the government plan would action consumers added money for their old cars than a dealership would on trade-in. The government would artlessly atom the old cars.
What’s the point?
Actually, there are two. The Detroit News explains, “The move would yield dirtier cars off the anchorage and addition crumbling auto sales.”
A Detroit Free Press beat in abutment of the plan notes, “Older cars afford far added bounded pollution. A California study, for example, begin that in 2010, cars from archetypal year 1998 or beforehand will be amenable for 25 percent of afar apprenticed but 75 percent of bounded pollution.”
The move would aswell cut into oil consumption, the Free Press comments. “Consider that if two humans drive the aforementioned amount of miles, the one who switches from an SUV that gets 10 miles-per-gallon to one that gets 12 will in fact save added gasoline than the being who switches from a auto that gets 30 miles-per-gallon to a amalgam that gets 50.”
The plan, however, has action – from the humans who plan on beforehand cars. Canadian Driver reports, “Seven barter associations, apery the automotive aftermarket, accept aloft objections to” the plan, adage that such programs “threaten jobs in the automotive aftermarket, aback they abolish the befalling to adjustment and advancement absolute cars and accession the amount of acclimated cars and parts.”
The abstraction isn’t new – we appear aback in July that several states accept offered “cash for clunkers” programs in contempo years. But annihilation on such a calibration has anytime been attempted. As the bill makes its way through Congress, we’ll accumulate you updated.
In the meantime, if you are planning to barter in your old car, analysis the best car deals with U.S. News’ car rankings and reviews.
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