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Cash For Clunkers Program
Posted By Jim On 06/10/2009 @ 3:13 pm In Cars | 57 Comments
Update: The bill has passed both chambers of Congress , getting through the Senate on Thursday, and President Obama is expected to sign it into law soon.
The Cash for Clunkers program would provide a voucher worth $3,500 to $4,500 to consumers trading their vehicles in. The vehicles have to be in running condition and get less than 18 miles a gallon in fuel efficiency. The value of the voucher is determined by this schedule:
Here’s the WSJ chart describing the benefit:
The bill has two purposes:
There are downsides to the bill though – the bill would call for the cars to be crushed and the vouchers would only applicable towards the purchase of a new vehicle, rather than a used one.
I like the idea of it but I think we’re creating a lot of special tax credits that prop up various industries. Also, not everyone is able to take advantage of these new credits, which is a bit unfair. The prime example is the $8,000 first time homebuyer credit , which was created to artificially boost the housing sector. Now we have this proposed $4,500 credit that will only help people who are close to buying a new car.
What do you think?
(Photo: wickenden )
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 bill has passed both chambers of Congress: http://online.wsj.com/article/SB124485495153311725.html
 $8,000 first time homebuyer credit: http://www.bargaineering.com/articles/8000-first-time-homebuyers-credit.html
 wickenden: http://www.flickr.com/photos/wickenden/3693742013/sizes/m/
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