After re-reading the article several times, i have a few comments now that it has had a chance to soak in.

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.

Is that saying that you can ONLY turn in your older car in exchange for a new one? Thus creating a New Car sale and put money in the pocket of car makers?

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.

Again, to put money in the pockets of car makers?

I guess this is whats going to be needed to get the government off of the car maker's back.

 

Its definitely about new cars only. I know not everyone benefits. I, for one, have never bought a new car. If a law like this comes into effect in Canada then I'm a lot closer. The 98 Regal GS I own would never fetch $4500 as a sale or trade in now.