Cash $$$ 4 Clunkers~> WoW TaxPayers ?
#1
06-10-2009, 01:11 PM
Cash $$$ 4 Clunkers~> WoW TaxPayers ?
Cash For Clunkers Bill: House Passes, We Analyze
By Matt Hardigree, 6:25 PM on Tue Jun 9 2009, 10,063 views
The Community Assistance to Recycle and Save Act (CARS Act), more commonly known as the Cash for Clunkers bill, passed the U.S. House of Representatives moments ago by a vote of 298-to-119. So how's it work?
The concept behind "cash for clunkers" as practiced by both the House and Senate versions of the bill, as well as successfully in other countries, is to create demand for new cars and raise fuel efficiency standards by encouraging consumers to trade in their gas guzzling "clunkers" for more efficient vehicles and, as an incentive, to give them cash.
The compromise House version of the CARS Act (HR 2751) proposes $3,500 or $4,500 vouchers for consumers interested in trading up to a more efficient vehicle. Once the program is enacted you'll have approximately one year to make the move. The hope is the Act will increase new vehicle sales by one million units in the first year at a time when the market is expected to experience sales of less than 10 million. The bill still has to go to the Senate, where it's expected some tweaks will be made before a final bill goes to the President.
How do you qualify for the voucher?
For Passenger Cars
If you have a passenger automobile not classified as a truck you qualify for a $3,500 credit if you trade in a less efficient vehicle for one with a combined fuel economy value at least 4 MPG higher that costs less than $45,000. The passenger car being trading in has to get 18 MPG or less, meaning you can't trade in a first generation Prius for a newer one. Additionally, the new vehicle has to get 22 MPG or better. In order to qualify for $4,500 you need to buy a vehicle that gets 10 MPG better combined than your trade-in.
For Light Duty Truck And SUVs
If you decide you want to trade in your category 1 light truck or SUV you need to find a new vehicle capable of getting a combined MPG of better than 18 MPG. If the new vehicle gets 2 MPG better you're eligible for $3,500. If you want the full $4,500 you need to find a new truck capable of getting a combined mileage 5 MPG higher.
For Heavy Duty Trucks And Vans
If you have a large Class 1 truck you're eligible for a $3,500 voucher if you trade up for one capable of getting at least 15 MPG combined and gets 1 MPG combined. For $4,500 the new vehicle will also have to provide performance 2 MPG or better than the trade in.
For Work Trucks
The best you can get for trading up to a Class 2 truck like a Ford F-250, is $3,500. In order to get this voucher you need to be trading in a vehicle with a model year older than 2001 for a new truck of smaller or similar size. Because of recent federal regulation changes, it's assumed the new truck is going to have a higher fuel economy.
Trading Up
After receiving questions about this from commenters, we contacted the sponsoring Congresswoman's staff and they assured us you can trade up from a truck or SUV to a passenger car (or smaller truck) assuming the new vehicles meets the minimum requirements (18 MPG or better, under $45,000) and is more efficient than the trade-in.
No Cheating
Those wishing to buy an older junked car for $200 and trade it in for $4,500 towards a new car are going to be dissapointed. The bill requires you to own and operate the car for more than a year before trading it in and it has to be in drivable condition, meaning the clunker can't be overly clunky.
No Old Cars
Many car enthusiasts fearful someone will trade in a rare classic will applaud the section limiting the cars to those produced in model year 1985 or after. Of course, this wasn't done for the sake of car fans. They can't easily determine the combined fuel economy of vehicles before the date because the EPA didn't track this data.
To The Crusher!
The law is very explicit on this point: the car has to be crushed. No salvaging it. No retitling it. No shipping it off to another country. The car has to be crushed and the title has to be transferred. Anyone trying to pass the voucher off and then resell the car could be penalized $15,000 per violation. However, you can strip and sell any part of the car that isn't the engine block.
[Library Of Congress, Detroit News
MCF Member's...What do you think of
Bill/Article ? ? ?
Post your thoughts....It's your $'s
By Matt Hardigree, 6:25 PM on Tue Jun 9 2009, 10,063 views
The Community Assistance to Recycle and Save Act (CARS Act), more commonly known as the Cash for Clunkers bill, passed the U.S. House of Representatives moments ago by a vote of 298-to-119. So how's it work?The concept behind "cash for clunkers" as practiced by both the House and Senate versions of the bill, as well as successfully in other countries, is to create demand for new cars and raise fuel efficiency standards by encouraging consumers to trade in their gas guzzling "clunkers" for more efficient vehicles and, as an incentive, to give them cash.
The compromise House version of the CARS Act (HR 2751) proposes $3,500 or $4,500 vouchers for consumers interested in trading up to a more efficient vehicle. Once the program is enacted you'll have approximately one year to make the move. The hope is the Act will increase new vehicle sales by one million units in the first year at a time when the market is expected to experience sales of less than 10 million. The bill still has to go to the Senate, where it's expected some tweaks will be made before a final bill goes to the President.
How do you qualify for the voucher?
For Passenger Cars
If you have a passenger automobile not classified as a truck you qualify for a $3,500 credit if you trade in a less efficient vehicle for one with a combined fuel economy value at least 4 MPG higher that costs less than $45,000. The passenger car being trading in has to get 18 MPG or less, meaning you can't trade in a first generation Prius for a newer one. Additionally, the new vehicle has to get 22 MPG or better. In order to qualify for $4,500 you need to buy a vehicle that gets 10 MPG better combined than your trade-in.
For Light Duty Truck And SUVs
If you decide you want to trade in your category 1 light truck or SUV you need to find a new vehicle capable of getting a combined MPG of better than 18 MPG. If the new vehicle gets 2 MPG better you're eligible for $3,500. If you want the full $4,500 you need to find a new truck capable of getting a combined mileage 5 MPG higher.
For Heavy Duty Trucks And Vans
If you have a large Class 1 truck you're eligible for a $3,500 voucher if you trade up for one capable of getting at least 15 MPG combined and gets 1 MPG combined. For $4,500 the new vehicle will also have to provide performance 2 MPG or better than the trade in.
For Work Trucks
The best you can get for trading up to a Class 2 truck like a Ford F-250, is $3,500. In order to get this voucher you need to be trading in a vehicle with a model year older than 2001 for a new truck of smaller or similar size. Because of recent federal regulation changes, it's assumed the new truck is going to have a higher fuel economy.
Trading Up
After receiving questions about this from commenters, we contacted the sponsoring Congresswoman's staff and they assured us you can trade up from a truck or SUV to a passenger car (or smaller truck) assuming the new vehicles meets the minimum requirements (18 MPG or better, under $45,000) and is more efficient than the trade-in.
No Cheating
Those wishing to buy an older junked car for $200 and trade it in for $4,500 towards a new car are going to be dissapointed. The bill requires you to own and operate the car for more than a year before trading it in and it has to be in drivable condition, meaning the clunker can't be overly clunky.
No Old Cars
Many car enthusiasts fearful someone will trade in a rare classic will applaud the section limiting the cars to those produced in model year 1985 or after. Of course, this wasn't done for the sake of car fans. They can't easily determine the combined fuel economy of vehicles before the date because the EPA didn't track this data.
To The Crusher!
The law is very explicit on this point: the car has to be crushed. No salvaging it. No retitling it. No shipping it off to another country. The car has to be crushed and the title has to be transferred. Anyone trying to pass the voucher off and then resell the car could be penalized $15,000 per violation. However, you can strip and sell any part of the car that isn't the engine block.
[Library Of Congress, Detroit News
MCF Member's...What do you think of
Bill/Article ? ? ?
Post your thoughts....It's your $'s
#2
06-10-2009, 01:18 PM
Monte Of The Month -- August 2009
Join Date: Jan 2009
Location: Highland, IN
Posts: 5,827
IDK. Even after reading about it earlier I'm still a bit confused about how it work. Does it mean I can trade in my gas guzzler SS for a 2LT Camaro and get this credit? I'm still a bit confused.
#3
06-10-2009, 01:50 PM
Join Date: Dec 2007
Location: Henderson, NV
Posts: 6,996
I guess you can either junk your present car to get a new one and get back into payments or take the bus cause you cant afford payments at all.
Thats what it seams like Ted. If it boils down to it, I might trade my car in for a new Monte Carlo. IF i can find one a lot that is still new.
#4
06-10-2009, 02:01 PM
LoL `Ted, JJ..
I heard about it on the radio, and then did a Google's
Search & found the above infor.
I'm always conFuZed & this one really confuses `me
But, then I remembered,
It was written bypolicitians
that's why ? ?
...LOL - 4-Sure
#5
06-10-2009, 02:36 PM
Monte Of The Month -- August 2009
Join Date: Jan 2009
Location: Highland, IN
Posts: 5,827
And I don't think my scenario would work.
2006 Monte Carlo SS: 18/28 mpg
2010 Camaro V6: 19/28 mpg
No deal.
#6
06-10-2009, 02:42 PM
Monte Of The Month -- August 2009
Join Date: Jan 2009
Location: Highland, IN
Posts: 5,827
#7
06-10-2009, 03:29 PM
Join Date: Dec 2007
Location: Henderson, NV
Posts: 6,996
I just checked and fuel millage for my car is all over the map. One site ( fueleconomy.gov) has my car with:
Fuel Type MPG (highway) MPG (combined)
but Automotive.com has me at:
Fuel Economy: 20 MPG city / 29 MPG highway
I know that i am just about what Automotive.com said, but i am wondering where the other site got its numbers from.
But my main concern is when its going to need parts. I know that i plan on rebuilding my block next year, but will i be able to get what i need or will i be squeezed out cause of this bill?
It would if you got a Focus.
Fuel Type
Regular
MPG (city) 15
24
18
but Automotive.com has me at:
Fuel Economy: 20 MPG city / 29 MPG highway
I know that i am just about what Automotive.com said, but i am wondering where the other site got its numbers from.
But my main concern is when its going to need parts. I know that i plan on rebuilding my block next year, but will i be able to get what i need or will i be squeezed out cause of this bill?
Last edited by The Popcorn King; 06-10-2009 at 03:31 PM.
#8
06-10-2009, 04:20 PM
Monte Of The Month -- August 2009
Join Date: Jan 2009
Location: Highland, IN
Posts: 5,827
#9
06-10-2009, 04:53 PM
Join Date: Aug 2008
Location: London, Ontario
Posts: 5,611
I think this law is great!
Its not about actually trading your car - you have to crush it. Nobody get to buy it - up to $4500 to destroy your "gas guzzler". So you wouldn't be reasonably eligible if you car was worth more then $3500-$4500. You can't trade it in at all.
Its a great option I think. I'm used to driving crappy old cars the I drive to their very end anyways - not kidding. Car's come to me to die. I have never sold a car to anyone other then the wreckers. I only ever get $100.
The requirement of the new car is combined fuel economy (highway&city). I'm not quite sure how that's calculated, but I don't think a v6 camaro would be shy of 22 mpg combined.
It could hurt availability of recycled parts, but I guess that stimulates the economy too
Its not about actually trading your car - you have to crush it. Nobody get to buy it - up to $4500 to destroy your "gas guzzler". So you wouldn't be reasonably eligible if you car was worth more then $3500-$4500. You can't trade it in at all.
Its a great option I think. I'm used to driving crappy old cars the I drive to their very end anyways - not kidding. Car's come to me to die. I have never sold a car to anyone other then the wreckers. I only ever get $100.
The requirement of the new car is combined fuel economy (highway&city). I'm not quite sure how that's calculated, but I don't think a v6 camaro would be shy of 22 mpg combined.
It could hurt availability of recycled parts, but I guess that stimulates the economy too
#10
06-10-2009, 06:23 PM
I'll have to show this to my Mom tonight, she's been looking at a new car. The '93 Suburban with the 350 in it get about 17 on the highway now. I don't know what the rating was. Pretty sure Cobalts get over 4mpg more than an old 350 powered 'burban right?